mcpherson company must purchase a new milling machine. the purchase price is $50,000, including installation. the machine has a tax life of 5 years, and it can be depreciated according to the following rates. the firm expects to operate the machine for 4 years and then to sell it for $12,500. if the marginal tax rate is 25%, what will the after-tax salvage value be when the machine is sold at the end of year 4? year depreciation rate 1 0.20 2 0.32 3 0.19 4 0.12 5 0.11 6 0.06
