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You are a project manager. You are estimating cash flows of a potential project that requires...

You are a project manager. You are estimating cash flows of a potential project that requires investment of 400,000in a machine, including installation cost, and $60,000 in working capital which will be fully captures at the end of the project. The machine has the estimated life of 7 years and will be depreciated vie simplified straight-line method. The project is expected to raise the firm's revenues by $330,000 and costs by $125,000 annually. the machine you purchase for the project can be sold for $70,000. The firm has the marginal tax rate of 34%. What is the terminal value of the project? (please show all work)

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