A company is investing $800,000 to add a new machine to its production line. The installation cost is $20,000. The machine will be sold at the end of year 3 for $600,000 before taxes. The equipment purchase falls under the three year MACRS depreciation schedule (33.33%, 44.45%, 14.81%, 7.41%). The tax rate is 30%. What is the after tax selling price of the machine? in year 3 a. $600,000 b. $438,229 c. $420,547 d. $490,650 e. None of the above
