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Equipment is sold for $30,000 at the end of a project. The working capital return is...

Equipment is sold for $30,000 at the end of a project. The working capital return is $50,000. The tax rate is 40%. What is the terminal cash flow?

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Answer #1

Terminal Cash flow = After Tax Sale Price of equipment+ Working Capital return

= (30,000 * 60%) + 50,000

= $ 68,000

Answer : $ 68,000

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