Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 $29,100 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentag 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 513 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) Proceeds from sale of new machine Tax on sale of new machine Total after-tax proceeds-new asset Proceeds from sale of old machine Tax on sale of old machine Total after-tax proceeds old asset Change in networking capital Terminal cash flow $ Enter any number in the edit hields and then continue to the next question useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $196,000 and will require Siation percentages). A $25,000 increase in net working capital will be required to support the new machine. The firm's wears to net $13,100 before taxes, the new machine at the end of 4 years will be worth $79.000 before taxes. Calculate 4 (Click on the icon here 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 Percentage by recovery year" Recovery year 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 7% 12% 12% 12% 5 12% 9% 9% 6 9% 8% 7 9% 7% 8 4% 6% 9 6% 10 6% 11 4% Totals 100% 100% 100% 100% "These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention 5% managers plan to evaluate the potential replacement over a 4-year period. They estimate that the he terminal cash flow at the end of year 4 that is relevant to the proposed purchase of the new m The terminal cash flow for the replacement decision is shown below: (Round to the nearest dolla Proceeds from sale of new machine Tax on sale of new machine Total after-tax proceeds-new asset Proceeds from sale of old machine | $ $ Tax on sale of old machine A Total after-tax proceeds-old asset Change in net working capital M Terminal cash flow CA 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 529.100 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages) A $25.000 increase in 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 $13,100 before are the new he 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) 5 Proceeds from sale of new machine Tax on sale of new machine Total after-tax proceeds new asset Proceeds from sale of old machine Tax on sale of ald machine Total after-tax proceeds-old asset Change in not working capital Terminal cash flow of 10 years with a newer, more sophisticated machine. The new machine will cost $196,000 and will require Dentages). A $25,000 increase in net working capital will be required to support the new machine. The firm's # $13,100 before taxes, the new machine at the end of 4 years will be worth $79,000 before taxes. Calculate 10 years Click on the icon here 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 Percentage by recovery year Recovery year 3 years 5 years 7 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 7 9% 7% 8 4% 6% 9 6% 6% 10 4% 11 Totals 100% 100% 100% 100% These percentages have been rounded to the nearest whole percentato simplify.calculations while