A firm is looking at replacing a machine. The new machine will cost $774425 and in 5 years’ time the machine could be sold for $162713. The allowable depreciation rate is 10.6% on a straight line basis. The company tax rate is 30%. What is the terminal cash flow assuming the project is evaluated over a 5 year investment horizon? (The allowed rounding error for this question is within 1%.

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First book value 774425 774425 5 0106 36397975 ... View the full answer