As an alternative, you could purchase “Model B” that costs $…

As an alternative, you could purchase “Model B” that costs $500,000, and will be depreciated using four-year, straight-line depreciation.  You will have no maintenance cost, and the equipment will be sold for $60,000 at the end of three years.  If your effective tax rate is 20%, what is the net salvage value of this equipment at the end of three years?  Your WACC is 10% on equipment purchases.