Smith: Attempt 1 Question 5 (1 point) 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 and will be depreciated by using straight line depreciation to zero over its five year life. Net working capital is expected to be -$5,000. The firm has a 40 percent tax rate on ordinary income and long-term capital gain. The terminal cash flow is: $4,000 $5,000 $14,000 $15,000 Question 6 (1 point) Find the payback period of the following investment? hp