7) A machine currently in use was originally purchased 2 years ago for $40,000. The machine is being depreciated under MACRS using a 5-year recovery period. A new machine, using a 3-year MACRS recovery period, can be purchased at a price of $140,000 and requires $10,000 to install. If the new machine is acquired, the firm expects a $35,000 increase in current assets and a $15,000 increase in current liabilities. At the end of 3 years, the market price of the old machine will equal zero, but the new machine could be sold for a net of $35,000 before taxes. The firm is subject to a 40% tax rate. Find the terminal cash flow. (15 pts)