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 $204,000 and will require 29.600 in installation costs will be depreciated under MACRS using a 5 year recovery period (see the table for the applicable depreciation percentages) A 122,000 create networking captal be required to support the new machine. The firm's managers plan to evaluate the potential replacement over a year period. They estimate that the old machine could be sold at the end of 4 years to net 515.800 before taxes: the new machine at the end of years will be worn 575.000 before awes 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 ww factate The terminal cash flow for the replacement decision is shown below Round to the nearest dolar) Data Table Proceeds from sale of new machine Tax on sale of new machine Total after tax proceeds-wasset Proceeds from sale of old machine (Click on the icon here in order to copy the contents of the datatable below into a spreadsheet) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Tax on sale of old machine Totalher-tax proceeds-old asset Change in networking capital Terminal cash flow ery year Recovery year 18% Totals 100% 100% 100% "These percentages have been founded to the nearest whole percent to simplity calculations while retaining re l o calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentage of directly apply double-declining balance (200%) depreciation using the half-year convention Enter any number in the edt helds and then continue to the next question Print Done