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20. Zinnia Corporation is considering the purchase of a new machine that will cost $360,000. The firm would depreciate the machine using the straight line
20. Zinnia Corporation is considering the purchase of a new machine that will cost $360,000. The firm would depreciate the machine using the straight line method over a period of 6 years to a salvage value of zero. However, the firm expects to sell the machine after 5 years and believes that it could get $80,000 for the machine at this time. If the firms marginal tax rate is 40%, what is the terminal cash flow associated with this project?
Group of answer choices
a. $63,200
b. $72,000
c. $80,800
d. $112,600
e. none of the above
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