Marshall-Miller & Company Is Considering the Purchase of a New

question 32

Multiple Choice

Marshall-Miller & Company is considering the purchase of a new machine for $50,000,installed.The machine has a tax life of 5 years,and it can be depreciated according to the depreciation rates below.The firm expects to operate the machine for 4 years and then to sell it for $12,500.If the marginal tax rate is 40%,what will the after-tax salvage value be when the machine is sold at the end of Year 4?

• A)$ 8,878
• B)$ 9,345
• C)$ 9,837
• D)$10,355
• E)$10,900

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