Terminal cash flow-Replacement decision Russel Industries is considering replacing a fully deprecated machine that has a remaining useful fe of 10 years with a newer more sophisticated machine. The new machine will cost 5207.000 and will require 529.000 in installation costs. It will be deprecated under MACRS using a 5-year recovery period to the table for the applicable depreciation percentages A 121.000 Increase in not working capital 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 years tot 56.000 Before the e machine at the end of 4 years will be worth 574.000 before taxes Calculate the terminal cash fow at the end of year that is relevant to the proposed purchase of the new machine The fissated to a 40% te The terminal cash flow for the replacement decision is shown below. (Round to the nearest dollar) Proceeds from sale of new machine Data Table Tix on sale of new machine Total after tax proceeds new it (Click on the icon here in order to copy the contents of the datatable below into a prest) Proceeds from sale of machine $ Rounded Depreciation Percentages by Recovery Year Using MACRS for Tax on sale of old machine First Four Property Classes Total for tax proceeds-old set Percentage by recovery year Recovery year 3 years 7 years Change in net working capital 10 years 33% 20 10 10W 2 45% 323 Terminal cash fione 10% 3 15 185 14 75 12% 12% 125 5 12% 95 9 6 SN 9N as 8 4 ON 10 os 11 4 100% 100% 1001 100 These percentages have been rounded to the narest Whole percent to milyon retaining room To calculate the actual depreciation for purpose, be sure to apply the adul rounded percentages or declypely double-decling balance (2009) depreciation using the half year convention Syears 25