Homework: Chapter 11 Homework of 10 (B complete) HW Score: 70%, 7 of 10 pts ce Score: 0 of 1 pt P11-21 (similar to) Question Help Terminal cash flow Various lives and sale prices Looner Industries sunt i ng the purchase of a new machine that costs 5162.000 and requires $20.400 in installation costs Purchase of this machine is expected to result in an increase in net working capital of $29,700 to support the expanded level of operations The firm plans to depreciate the machine under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages and expects to sell the machine tone $10 500 before taxes at the end of its usable life The mis subito a 40% takrat 2. Calculate the terminal cash flow for a usable life of (1) 3 years, 25 years and (3) 7 years b. Discuss the effect of usable on terminal cash flows using your findings in paita c. Assuming a 5-year usab M alate the terminal cash flow if the machine were sold tone (1) $9 120 121 5169 700 before weathe end of 5 years d. Discuss the act of sale price on terminal cash flow using your findings in part a. Calculate the terminal cash flow for a sabe e of (1) 3 years (2) 5 years and (3) 7 years The following table can be used to solve for the terminal carchow Round to the nearest dollar) s Proceeds from sale of proposed asset Toxone of proposed asset Total Wo r ceeds now Change in working capital Terminal can now and then click Check