Answer:
terminal cash flow $932,000
Explanation:
21,000,000/15 = 1,400,000
1,400,000 x 8 = 11,200,000
<u>Net Book Value:</u> 21,000,000 - 11,200,000 = 9,800,000
Sale 10,000,000
Gain 200,000
<u>We must pay taxes for the gain:</u>
200,000 x .34 = 68,000
<u>terminal cash flow:</u> proceeds - taxes = 10,000,000 - 68,000 = 932,000