Initial and terminal cash flows

Marston Manufacturing Company is considering a project that requires an investment in new equipment of $$3,800,000,$ with an additional $$190,000$ in shipping and installation costs. Marston estimates that its accounts receivable and inventories need to increase by $$760,000$ to support the new project, some of which is financed by a $$304,000$ increase in spontaneous liabilities $($accounts payable and accruals$).$

The total cost of Marston$$s new equipment is $--------$ and consists of the price of the new equipment plus the $---------.$

In contrast, Marston$$s initial investment outlay is $-------.$

Suppose Marston$$s new equipment is expected to sell for $$800,000$ 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 investment. The company chose to use straight$-$line depreciation, and the new equipment was fully depreciated by the end of its useful life. If the firm$$s tax rate is $40\%,$ what is the project$$s total terminal cash flow?

$$480,000$

$$776,000$

$$800,000$

$$936,000$