An electronic pumping system purchased for 399,500 at the beginning of a seven-year investment project is 82.45% depreciated at the end of the project. if the machine can be sold at the end of the project for 69.5% of its book value, how much will the firm net from the sale (inclueding the amount of saving from any tax loss)? The firm's marginal tax rate is 38%. The entire cost of the system was financed with proceeds from the sale of nine-year BB-rated corporate bonds with a $1000 par value and 6.585% annual coupon. The current yield to maturity on these bonds is 7.085%
A. $56,854
B. $57,490
C. $48,728
D. $40,602