BuiltRite Corporation has decided to sell some old equipment to make room for a new project. The salvage value of the equipment is $300,000. The firm would be able to recover $60,000 in working capital when the equipment is sold. Their tax rate is 21%. The old equipment has a book value of $210,000. What is the terminal cash flow?

a) $341,100 b) $131,100 c) $297,000 d) $281,100 e) $237,000

10. BestTech has some slightly obsolete equipment that still has a book value of $200,000 on their balance sheet. They can sell the equipment now for $140,000, and they would recover $60,000 in working capital. Their tax rate is 21%. If they sell the equipment, what would be the terminal cash flow?

a) $110,600 b) $107,400 c) $152,600 d) $212,600 e) $170,600