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 mahine will cost 195,000 and will require $30,600 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see table for the applicable depriciation percentage) A 21,000 increase in net working captitol will be required to support the new machine. The firm's managers plan to evaluate the potential replacement 4-year perios. They estimate that the old machine could be sold new at the end of 4 years will be worth $16,300 before taxes;the new machine at the wnd of 4 years will be worth 72,000 before taxes. Calculate the terminal cash flow at the end of year 4 that is relevant to the proposed purchse of the new mahine. The firm is subject to 40% tax rate.