Incremental costs $-$ Initial and terminal cash flow

Consider the case of Newcastle Coal Company:

Newcastle Coal Company is considering a project that requires an investment in new equipment of $$4,410,000.$ Under the new tax law, the equipment is eligible for $100\%$ bonus depreciation at $t=0$ so the equipment will be fully depreciated at the time of purchase. Newcastle estimates that its accounts receivable and inventories need to increase by $$840,000$ to support the new project, some of which is financed by a $$336,000$ increase in spontaneous liabilities $($accounts payable and accruals$).$ The company's tax rate is $25\%.$

The after$-$tax cost of Newcastle's new equipment is $.$

Newcastle's initial net investment outlay is

Suppose Newcastle's new equipment is expected to sell for $$1,200,000$ at the end of its four$-$year useful life, and at the same time, the firm expects to recover all of its net operating working capital $($NOWC$)$ investment. Remember, that under the new tax law, this equipment was fully depreciated at $t=0.$ If the firm's tax rate is $25\%,$ what is the project's total termination cash flow?

$$1,200,000$

$$1,404,000$

$$900,000$

$$804,000$