Question: A firm is looking at replacing a machine. The new machine will cost $617264 and in 5 years time the machine could be sold for
A firm is looking at replacing a machine. The new machine will cost $617264 and in 5 years time the machine could be sold for $159141. The allowable depreciation rate is 12.2% 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%. Please round your answer to the nearest dollar but exclude $ and , when typing your answer.)
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