$$Replacement decision$$Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of $10$ years with a$$ newer, more sophisticated machine. The new machine will cost $$202,000$ and will require $$30,400$ in installation costs. It will be depreciated under MACRS using a$5-$year recovery period$($see the table for the applicable depreciation$$ percentages$).$ A $$25,000$ increase in net working capital will be required to support the new machine. The$$ firm's managers plan to evaluate the potential replacement over a$4-$year period. They estimate that the old machine could be sold at the end of $4$ years to net $$14,400$ before$$ taxes; the new machine at the end of $4$ years will be worth

$$78,000$ before taxes. Calculate the terminal cash flow at the end of year $4$ that is relevant to the proposed purchase of the new machine. The firm is subject to a $40\%$ tax rate.