Question
Your company is considering the purchase of a new machine. After 4 years of operation, you would sell the machine for a salvage value
Your company is considering the purchase of a new machine. After 4 years of operation, you would sell the machine for a salvage value of $52,508. However, at that time the machine would not have been depreciated to a value of 0, but have a remnant book value of $20,392. The operation of the machine requires additional NOWC of $28,651, which would not change throughout the project. The firm's corporate tax rate is 40%. What is the project's Terminal Cash Flow? Enter your answer in dollars, without decimals.
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
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