MACRS RATE Recovery 10 3 years 5 years 7 years year years 133% 20% 14% 10% 245 32 25 18 315 19 18 14 47 12 12 12 5 12 19 19 15 19 8 7 19 14 16 9 16 10 16 11 4 A corporation is evaluating the relevant cash flows for a capital budgeting decision and must estimate the terminal cash flow. The proposed machine will be disposed of at the end of its usable life of five years at an estimated sale price of $15,000. The machine has an original purchase price of $80,000, installation cost of $20,000, and will be depreciated under the five-year MACRS. Net working capital is expected to decline by $5,000. The firm has a 40 percent tax rate on ordinary income and long-term capital gain. The terminal cash flow is $26,000 $16,000 $24,000 O $14,000