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What are the terminal year cash flows

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An increasingly popular trend in mountain biking is to remove the chain and coast down the mountain. This has reduced demand for crank sets, chains, and derailleurs. As a result, Endo Mountain Bikes Inc. is shutting down its bicycle propulsion plant. It purchased the plant 2 years ago for $310,000. It can sell the plant today for $169,087.6. The plant is in Class 43 with a depreciation rate of 30%. When the plant is closed, Endo's net working capital will decrease by $50,000. EBITDA in the final year is $260,000. Endo's tax rate is 35%, and their cost of capital is 8%.

What are the terminal year cash flows?

Reference no: EM133069309

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