Sooner Industries is currently analyzing the purchase of a new machine that costs $159,000 and requires $20,500 in installation costs. Purchase of this machine is expected to result in an increase in net working capital of $30,100 to support the expanded level of operations. The firm plans to depreciate the machine under MACRS using a 5-year recovery period and expects to sell the machine to net $9,600 before taxes at the end of its usable life. The firm is subject is subject to a 40% tax rate. a. Calculate the terminal cash flow for a usable life of (1) 3 years, (2) 5 years, and (3) 7 years. b. Discuss the effect of usable life on terminal cash flows using your findings in part a. c. Assuming a 5-year usable life, calculate the terminal cash flow if the machine were sold to net (1) $8975 or (2) $169400 (before taxes) at the end of 5 years. d. Discuss the effect of sale price on terminal cash flow using your findings in part c.