A corporation is considering purchasing a new plant asset. The asset will cost $35,000. If they purchase the asset they estimate that the salvage value of the asset they purchase will be $4,000 in 5 years (assume the book value is $0) They require a 10% return on similar investments and the tax rate is 20%. Calculate the terminal cash flow (you must include the calculation in order to receive credit)

A corporation is considering purchasing a new plant asset. The asset will cost $35,000. If they purchase the asset they estimate that the salvage value of the asset they purchase will be $4,000 in 5 years (assume the book value is $0 ) They require a 10% return on similar investments and the tax rate is 20%. Calculate the terminal cash flow (you must include the calculation in order to receive credit)