Grant Publishing just undertook the which need a $340,000 investment in NOWC, that will be recovered fully at end of project's life in five years. At that time, needed equipment will not be depreciated completely and still will have book value of $100,000. Firm's tax rate is 40%. If salvage value at the end of 5 years turns out to be $100,000, determine the project's total termination cash flow?
2) Assume that in 5years, Grant Publishing actually is able to get $140,000 for equipment even though it has book value of only $100,000. Determine the project's terminal year cash flow now?
3) Now assume equipment gets sold for $30,000 in 5years. What is the project's terminal year cash flow now?