What is the terminal cash flow for equipment

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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 $20,000 of net working capital, which was invested initially. Given that the firm's marginal corporate tax rate is 40%, what is the terminal cash flow for this equipment?

Reference no: EM132200031

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