Terminal cash flow$-$Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of $10$ years with a newer,

more sophisticated machine. The new machine will cost $$196,000$ and will require $$29,800$ in installation costs. It will be depreciated under MACRS using a $5-$year recovery

period $($see the table

for the applicable depreciation percentages$).$ A $$30,000$ increase in net working capital will be required to support the new machine. The firm's

managers plan to evaluate the potential replacement over a $4-$year period. They estimate that the old machine could be sold at the end of $4$ years to net $$15,000$ before taxes; the

new machine at the end of $4$ years will be worth $$71,000$ before taxes. Calculate the terminal cash flow at the end of year $4$ that is relevant to the proposed purchase of the new

machine. The firm is subject to a $40\%$ tax rate.