1. ABC Corporation needs to estimate the terminal cash flow by evaluating the relevant cash flows for the following capital budgeting decision. The new machine will be disposed of at the end of its usable life of five years with an estimated sales price of $15,400. The new machine has an original cost of $300,000 with installation costs of $75,000 and will be depreciated under the five-year MACRS. Net working capital of $5,000 is expected to be recovered. The firm has a 40 percent tax rate. The terminal cash flow would be __________.

1. $21,740
2. $19,060
3. $11,740
4. $9,060