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for the applicable depreciation percentages ) and expects to sell the machine to net $ 9 , 6 0 0 before taxes at the end

for the applicable depreciation percentages) and expects to sell the machine to net $9,600 before taxes at the end of its usable life. The firm is subject to a 21% tax rate.
a. Calculate the terminal cash flow for a usable life of (1) three years, (2) five years, and (3) seven years.
b. Discuss the effect of usable life on terminal cash flows using your findings in part a.
c. Assuming a five-year usable life, calculate the terminal cash flow if the machine were sold to net (1) $8,730 or (2) $170,400(before taxes) at the end of five years.
d. Discuss the effect of sale price on terminal cash flow using your findings in part c.
Data table
a. Calculate the terminal cash flow for a usable life of (1)3 years, (2)5 years, and (3)7 years.
The following table can be used to solve for the terminal cash flow: (Round to the nearest dollar.)
(Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)
Rounded Depreciation Percentages by Recovery Year Using MACRS for
First Four Property Classes
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