Terminal cash flow - Replacement decision Russet Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machino. The new machine will cost $204,000 and will require $30,400 in installation costs. It will be depreciated under MACRS using a 5 -year recovery period (see the table the applicable depreciation percentages). A $21,000 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 not $14,200 before taxes; the new machine at the end of 4 years will be worth $75,000before 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. The terminal cash flow for the replacement decision is shown below. (Round to the nearest dollar) Data table (Click on the icon here p in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes These percentages have been founded to the nearest whole percent to simplify carculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentagos or directly apply double-dectining balance (200%) depreclation using the hall-year