DU HORJ JUSULIDLU With the proposed grinder replacement decision c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement. Calculate the terminal cash flow below: (Round to the nearest dollar.) Proceeds from sale of new asset Tax on sale of new asset Total proceeds from sale of new asset Change in working capital Terminal cash flow d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision The time line for the incremental operating cash inflows is shown below: (Select the best choice below.) O A. Year 0 1 2 3 4 5 6 Enter any number in the edit fields and then continue to the next question UPILI UI d he ne the relevant cash flows associated with the proposed grinder replacement decision The time line for the incremental operating cash inflows is shown below. (Select the best choice below.) O A. Year 0 1 2 3 4 5 6 Cash flow B. Year - 572,494 0 $14,295 1 $22,376 2 $17,841 3 $17,540 4 $19,874 5 Cash flow - $72,494 OC. Year 0 $14,295 1 $22,376 2 $17,841 3 $17,540 4 $54,080 5 $2,206 6 Cash flow - $72,494 D. Year 0 $14,295 1 $22,376 2 $17,841 3 $17,540 4 $54,080 5 6 Cash flow - $72,494 $14,295 $22,376 $17,841 $17.540 $19,874 $2,206 Integrative Determining relevant cash flows Lombard Company is contemplating the purchase of a new high speed w i der to place the costing de The new purchased years ago t o 556700, was being deprecated under MACRS a 5 year y pod The tiggander is expected to have a w ide of years. The new er costs $14.00 5.500 t on costs, has a 5 yea usable and would be deprecated under MACRS using a year recovery period Lombard can currently sell the existing under for 9.200 without caring any removal or cleanup costs. To support the increased business resulting from purchase of grindet, accounts receivable would increase by 0.800 inventories by $31,000, and accounts payable by $57,200. At the end of 5 years, the existing grinder would have a market value for the new grinder would be sold to 529,000 remove and cleanup costs and before taxes. The firm is subject a 40% tax rate. The estimated earnings before depreciation, interest, and takes over the years for both the new and the waiting grinder we shown in the following table (Table contains the applicable MACRS depreciation percentages) Calculate the eve nt as the replacement of the existing by the new b. Determine the operating cash whows s ite withe proposed grinder Note: Be warto consider the depreciation in year 6) c. Determine the terminal cash flow expected at the end of yew show the proposed grinder replace d. Depict on a timeline the relevant case s associated with the proposed grinder replacement decision that incurring remove or cleanup costs. To support the increased 15 years, the existing and would have more wake of the new grinder would be sold to net 129 Data Table Data Table - X (Click on the icon here in order to copy the contents of the datatable below into a spreadsheet) in order to copy the contents of the datatable below (Click on the icon here into a spreadsheet) Rounded Depreciation Percentagestry Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 7 years Earnings before depreciation, interest, and taxes New grinder Exiggrinder 526100 2000 200 2400 22.00 62.400 Print Done "These percentages have been founded to the nearest whole percent i ly actions while tang realism. To calculate the actual depreciation for tax purposes, be sure to apply the chalounded percentages or directly apply double declining balance (2005) depreciation using the half year convention precio y 6) Activate Windows