Question: T. A eel-pumice is evaluating the televant sash aws for a capital budgeting decision and must esn'mate the teiminal cash ow. The prepnsed machine will

T. A eel-pumice is evaluating the televant sash aws for a capital budgeting decision and must esn'mate the teiminal cash ow. The prepnsed machine will be disposed of at the end cut" its usable life of ve years at an estimated sale [nice of Mimi]. The machine has an miginal pmehase pliee nf $E,, installatien east of $20,0[H], and will he depreciated under the veyear MERE. Net working capital is expected to decline by $5,0. The rm has a 4D pets-It tax rate on realism}.r inenme and longterm capital gain. The terminal cash aw is (a) $24l}. {b} $115-$000. (e) $141}. (d) $16,[HI|L
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