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all parts please! Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful Me of 10 years

all parts please!
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Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful Me of 10 years with a newer, more sophisticated machine. The new machine will cost $203,000 and will require $30,000 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages) A$21,000 increase in networking capital will be required to support the new machine. The firm's managers plan to evaluate the potential replacement over a 4-year period They estimate that the old machine could be sold at the end of 4 years to net $17,000 year 4 that is relevant to the proposed purchase of the new machine The firm is subject to a before taxes, the new machine at the end of 4 years will be worth $76.000 before taxes Calculate the terminal cash flow a 40% tax rate The terminal cash flow for the replacement decision is shown below (Round to the nearest do $ Proceeds from sale of new machine Tax on sale of new machine Total after tax proceeds new asset Proceeds bone sale of old machine Tax on sale of old machine Total after tax proceeds-old asset Change in net working capital Terminal cash flow S Data table (Click on the icon here in order to copy the contents of the data table w into a spreadsheet) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 2 4 5 6 0 10 11 Tilas 3 years 33% 45% 15% Percentage by recovery year 5 years 7 years 14% 20% 32% 19% 12% 12% 25% ******* 18% 12% 9% 3% 4% 10 years 10% 18% 14% 12% 9% 8% 7% 65 6% IN 4% 100% 100% 100% 500% sa pamantages have been rounded to the nearest whole percent to simply calculations while and the actual X Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $203,000 and will require $30,000 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages) A$21.000 increase in net working capital will be required to support the new machine The firm's managers plan to evaluate the potential replacement over a 4-year period. They estimate that the old machine could be sold at the end of 4 years to net $17,000 before taxes, the new machine at the end of 4 years will be worth $76,000 before taxes Calculate the terminal cash flow at the end of year 4 that is relevant to the proposed purchase of the new machine. The firm is subject to a 40% tax rate The terminal cash flow for the replacement decision is shown below (Round to the nearest dollar) Proceeds from sale of new machine Tax on sale of new machine Total afer tax proceeds news Proceeds from sale of old machine Tax on sale of old mache Tutal after-tas proceeds ass Change in net working capital Terminal cash flow $

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