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You are evaluating the proposed acquisition of a new machine costing $60,000, and it falls into the MACRS 3-year class. Purchase of the machine would require an increase of net operating working capital of $4,000, which will be recovered when the machine is sold. The machine would increase the firm's revenues by $30,000 per year and its operating costs by $16,000 per year. The machine is expected to be used only for 3 years and then be sold for $26,000. The firm's marginal tax rate is 28 percent, and the project's cost of capital is 14 percent. What is the non-operating terminal cash flows at year 3? MACRS 3-year schedule is as follows: 33%,45%,15%, and 7% for years 1 to 4 , respectively. You are evaluating the proposed acquisition of a new machine costing $60,000, and it falls into the MACRS 3-year class. Purchase of the machine would require an increase of net operating working capital of $4,000, which will be recovered when the machine is sold. The machine would increase the firm's revenues by $30,000 per year and its operating costs by $16,000 per year. The machine is expected to be used only for 3 years and then be sold for $26,000. The firm's marginal tax rate is 28 percent, and the project's cost of capital is 14 percent. What is the non-operating terminal cash flows at year 3? MACRS 3-year schedule is as follows: 33%,45%,15%, and 7% for years 1 to 4 , respectively

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