Morgado Inc. has provided the following data to be used in evaluating a proposed investment project:
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Initial investment
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$300,000
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Annual cash receipts
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$95,000
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Life of the project
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5 year
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Annual cash expenses
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$60,000
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Salvage value
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$31,000
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The company's tax rate is 31%. For tax purposes, the entire initial investment will be depreciated over 8 years without any reduction for salvage value. The company uses a discount rate of 11%.When computing the net present value of the project, what is the after-tax cash flow from the salvage value in the final year?