Homework: Chapter 10. Learning Objective 2. Topic Homework 3core: 0 of 1 pt 3 of 9 (9 complete) HW Score: 67.01%, 6.03 of 9 pts * Problem 10.LO2.7 (similar to) Question Help Ken Smith wants to start a deck and fence company called Heritage Design. Ken will run the business for three years and then retire. Assume that his investment outlays will occur immediately and all operating cash flows occur at year-end with the first year's cash flows occurring one year from now. Ken plans to buy two pick-up trucks at a cost of $25,900 per vehicle. He also expects to purchase $20,600 worth of tools and equipment. The trucks and the equipment are classified as a 5-year property. Ken expects that he will have to carry a lumber inventory of $25,600. At the end of three years, Ken expects that he will be able to sell each of the trucks for $4,930, but he expects that the tools and equipment will be worthless. The corporate tax rate is 30%. What are the terminal cash flows (the terminal year cash flows not including the operating cash flows)? The total cost of the trucks, tools and equipment (initial investment) is $ (Round to the nearest dollar) Enter your answer in the answer box and then click Check Answer. 6 parts Check Answer O Clea remaining The total cost of the trucks, tools and equipment (initial investment) is Calculate the depreciation schedule for the first 3 years below: (Round Year 1 Year 2 Year w Original Cost (Basis) MACRS Rates (5-year) Depreciation Expense Accumulated Depreciation Ending Book Value The tax on sale is $ (Round to the nearest dollar.) The net salvage is $ (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. part Clear All remaining Calculate the terminal cash flow below: (Round to the nearest dollar.) - Net salvage of asset +/- Change in net working capital = Terminal cash flow nter any number in the edit fields and then click Check Answer. I parts showing Clear All