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Find the Terminal Year Cash Flow given the following information: 1. Tucker Corp is terminating its project and can sell its New Widget machine for
Find the Terminal Year Cash Flow given the following information:
1. Tucker Corp is terminating its project and can sell its New Widget machine for $50,000 with a Book Value of $30,000.
2. The Lost Sale on its Old Widget machine is $15,000 with a Book Value of $0.
3. Net Working Capital will decrease by $20,000 since the project is being terminated.
4. Tax Rate = 40%
The Terminal Year Cash Flow is:
A. $63,000 | ||
B. $60,000 | ||
C.$56,000 | ||
D. $67,000 | ||
$53,000 |
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