The Weyland$-$Yutani Corporation is considering a new four$-$year

expansion project that requires an initial fixed asset investment

of $$400,000.$ The fixed asset will be depreciated straight line to

zero over its four$-$year tax life. The fixed asset will have a market

value of $$225,000$ at the end of the project$$s life. The project

requires an initial investment in net working capital of $$275,000.$

The working capital will be recovered at the end of the projects$$

four$-$year life. The project is estimated to generate $$1,100,000$ in

annual sales, with annual costs of $$800,000.$ The tax rate is $35$

percent and the firm uses an abnormally high discount rate of $30$

percent for the project.

Compute the terminal cash flow for the last year of the project.

a$.$ $$275,000$

b$.$ $$325,000$

c$.$ $$146,250$

d$.$ $$505,250$

e$.$ $$421,250$