Topsider Inc

Multiple Choice

Topsider Inc. is considering the purchase of a new leather-cutting machine to replace an existing machine that has zero salvage value. The net salvage value of the new machine is $6,000 and the return of net working capital is $3,520. Which of the following is the terminal cash value of the new machine?

A) $6,000
B) $3,520
C) $9,520
D) $7,000
E) $3,000