A company is considering an 8-year project to expand into a new geographical area. The project...

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A company is considering an 8-year project to expand into a newgeographical area. The project requires a new machine, which wouldcost $230,000 FOB San Francisco, with a shipping cost of $8,000 tothe new plant location. Installation expenses of $13,000 would alsobe required. This new machine would be classified as 7-yearproperty for MACRS depreciation purposes. The project engineersanticipate that this equipment could be sold for salvage for$40,000 at the end of theproject. If the corporate tax rate is 31%,what is the after tax salvage cash flow for this new machine at theend of the project? (Answer to the nearest dollar.)
MACRS percentages for depreciation each year are as follows:
Year %
1 14.29 2 24.49 3 17.49 4 12.49 5 8.93 6 8.93 7 8.93 8 4.45

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A company is considering an 8-year project to expand into a newgeographical area. The project requires a new machine, which wouldcost $230,000 FOB San Francisco, with a shipping cost of $8,000 tothe new plant location. Installation expenses of $13,000 would alsobe required. This new machine would be classified as 7-yearproperty for MACRS depreciation purposes. The project engineersanticipate that this equipment could be sold for salvage for$40,000 at the end of theproject. If the corporate tax rate is 31%,what is the after tax salvage cash flow for this new machine at theend of the project? (Answer to the nearest dollar.)MACRS percentages for depreciation each year are as follows:Year %1 14.29 2 24.49 3 17.49 4 12.49 5 8.93 6 8.93 7 8.93 8 4.45