At 600 units of production, the Steel Shelf Company has quarterly fixed costs of Table 5-1. Steel Shelf Company
Category Cost
Payment Period Cost
Rent
Monthly
$3,000
Utilities
Monthly
1,100
Insurance
Quarterly
1,200
Property Taxes
Annually
6,000
Steel
Per Shelf
9.00
Forming
Per Shelf
0.25
Labor
Per Shelf
0.75
Price
Per Shelf
20,00

Russell's is considering purchasing $697,400 of equipment for a four-year project. the equipment falls in the five-year macrs class with annual percentages of .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6, respectively. at the end of the project the equipment can be sold for an estimated $135,000. the required return is 13.2 percent and the tax rate is 23 percent. what is the amount of the aftertax salvage value of the equipment assuming no bonus depreciation is taken