Question: hi please help with all a through d thank you! Terminal cash flow Various lives and sale prices Looner Industries is currently analyzing the purchase
Terminal cash flow Various lives and sale prices Looner Industries is currently analyzing the purchase of a new machine that costs $162.000 and requires $19.700 in installation costs. Purchase of this machine is expected to result in an increase in not working capital of $30 400 to support the expanded level of operations. The firm plans to depreciate the machine under MACRS using a 5-year recovery period (son the table for the applicable depreciation porcentages) and expects to sell the machino to net $10.200 before taxes at the end of its usable life. The firm is subject to a 40% tax rate a. Calculate the final cash flow for a sablo Moot (1) 3 years (2) 5 years, and (3) 7 years b. Discuss the effect of usable on terminal cash flows using your findings in porta. c. Assuming a year usable, calculate the terminal cash flow it the machine were sold to net (1) 89,085 (2) $170,500 (before taxes) at the end of 5 years & Discuss the effect of sale price on terminal cash flow using your findings in parte. a. Calculate the terminal cash flow for a usable life of (1) 3 years. (2) 5 years, and (2) 7 years The following table can be used to move for the terminal cash flow (Round to the nearest dolor 3-year 10200 Data table Proceeds from sale of proposed asset - Tax on sale of proposed asset Total amor tax proced-now Change in net working capital Terminal cash flow $ $ $ $ (Click on the icon here in order to copy the contents of the datatable below into a spreadshot) a Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 10 years 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 124 125 12 5 12% 99 9 6 5% 9% 8% 7 0% 7 8 4 8% 9 6% 10 09 11 4% Totals 100% 100% 100% 100%
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