Question: Alpha Manufacturing has embarked on a post - audit review for one of their underperforming projects. The project required the firm to purchase specialised machinery

Alpha Manufacturing has embarked on a post-audit review for one of their underperforming projects. The project required the firm to purchase specialised machinery 4 years ago that cost $200131. The firm also had to pay an additional $10442 for delivery and installation. These costs were to be depreciated over 8 years to a $0 residual value. An initial increase of $80622 was also made in net working capital because of the project, as well as further increases of $16230 per annum. Due to the recent underperformance, Alpha Manufacturing is intending to terminate the project and sell the specialised machinery for $79930. The firms marginal tax rate is 30 percent.
What is the termination cash flow of this project if the firm decides to liquidate the underperforming project today?

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