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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

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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 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 $90,000 for the machine at this time. If the firm's marginal tax rate is 40%, what is the terminal cash flow associated with this project? a. $63,200 b. $72,000 c. $78,000 d. $112,600 e. none of the above

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