Question
You have been asked to evaluate the terminal cash flow of new investments. The purchase price for equipment is $30,000 and will be depreciated straight-line
You have been asked to evaluate the terminal cash flow of new investments. The purchase price for equipment is $30,000 and will be depreciated straight-line over a 3 years life. Purchase of the new equipment would require an increase in net operating working capital of $7584. The new equipment is expected to be used for 3 years and then be sold for $6925. The firm's marginal tax rate is 30%. Calculate the terminal cash flow. Please state your answer in total whole dollars without commas and no dollar signs. e.g. $50,000.20 should be entered as 50000.
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