Queue De Castor Foods Is Considering the Purchase of a New

Queue de Castor Foods is considering the purchase of a new capital asset for $35,000.The asset has an economic life of three years,a CCA rate of 20 percent,and expected salvage value of $5,000.The project also requires an investment in net working capital of $4,500.Assume the asset class remains open after the asset is sold.The firm's cost of capital is 14 percent and marginal tax rate is 40 percent.What is the present value of the terminal after-tax cash flow?

A) $2,319.20
B) $6,412.23
C) $9,900.48
D) $10,505.26