What is the project terminal cash flow

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Reference no: EM131947661

Your company is considering the purchase of a new machine. After 4 years of operation, you would sell the machine for a salvage value of $46001. However, at that time the machine would not have been depreciated to a value of 0, but have a remnant book value of $19746. The operation of the machine requires additional NOWC of $31636, which would not change throughout the project. The firm's corporate tax rate is 40%. What is the project's Terminal Cash Flow?

Reference no: EM131947661

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