URGENT

Terminal cash flow: Various lives and sale prices Looner industries is currently analyzing the purchase of a now machine that costs Stib5, 060 and fequires Purchase of this machine is expected to resutt in an increase in net working capial of $30,100 to support the expanded level of operations. The firm plans to depreciate the machine ur using a five-year recovery period (see the table for the applicable depreciation percentages) and expects to sed the machine to net $10,200 before ticres at the end of its usable in subject to a 21% tax rate. a. Calculate the terminal cash flow for a usable ife of (1) three years, (2) five years, and (3) soven years: b. Discuss the effect of usable life on terminal cash flows using your findings in part a. c. Assuming a five-year usable life, calculate the terminal cash flow if the machine were sold to net (1) $8,725 or (2) $170,400 (before taxes) at the end of five years. d. Discuss the effect of sale price on terminal cash flow using your findings in part c. a. Calculate the terminal cash fow for a usable life of (1) 3 years. (2) 5 years, and (3) 7 yoars. The following table can be used to solve for the terminal cash flow. (Round to the neprest dollac) Data table (Click on the icon here D 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 -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