CGS Company installed a new machine 5 years ago. At the time the machine was installed, the salvage value was estimated at $1,500. The machine has been fully depreciated using the straightline method with a salvage value. CGS sold the machine at the end of the 5year project for $4,000 cash. CGS is subject to a 25% tax rate. Calculate the terminal cash flow from the project.

1. 2500
2. 3375
3. 1500
4. 3000