Terminal cash flow-Various lives and sale prices Looner Industries is currently analyzing the purchase of a new machine that costs $157,000 and requires $19.600 in installation costs, Purchase of this machine is expected to result in an increase in net working capital of $29,800 to support the expanded lavel of operations. The firm plans to depreciate the machine under MACRS using a 5-yar recovery period (see the table EB for the applicable depreciation percentages) and expects to sell the maching to net $10,300 before taxes at the end of its usable life. The firm is subject to a 40% tax rate. a. Caculate the lerminel cash flow for s usable life of )3 yers, (2)5 years, and (3) 7 yeers b. Discuss the effect of usable life on terminal cash tlows using your findings in part a. c. Assuming 5 year usable life, calculate the terminal cash fow if the machine were sold to net 1) S8,830 ar(2) $169,300