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The president of Help Me Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $40,000, and it

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The president of Help Me Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $40,000, and it falls in the MACRS 3-year class. The applicable depreciation rates are 33 percent, 45 percent, 15 percent, and 7 percent. Purchase of the computer would require an increase in accounts payable of $2000. The computer would have an EBT & Depreciation of $15,000. The computer is expected to be used for three years and then sold for $25,000. The firm's marginal tax rate is 40 percent, and the project's cost of capital is 14 percent. What is the total value of the terminal year non-operating cash flows at the end of Year 3? $11.400 $14, 120 $18.120 $23,000 $25,000

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