What is terminal cash flow for this equipment

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Reference no: EM131343860

A firm is liquidating a factory. Equipment that originally cost $120,000 is being sold for $12,000 three years after its purchase. The equipment straight-line depreciated across four years. The firm needs to recover $20,00 of net working which was invested initially. Given that the firm's marginal corporate tax rate is 40%, what is the terminal cash flow for this equipment?

A. 7,200

B. 4,800

C.39,200

D. 32,000

Reference no: EM131343860

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