Newcastle Coal Company is considering a project that requires an investment in new equipment of $$4,200,000,$ with an additional $$210,000$ in shipping and installation costs. 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 total cost of Newcastle's new equipment is $2$ and consists of the price of the new equipment plus the

In contrast, Newcastle's initial 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 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?

$$1,224,000$

$$720,000$

$$984,000$

$$1,200,000$