Johnson Corp. is thinking huge project to expand. Project has initial cost of $500,000 (this is amount can be depreciated using following depreciation schedule: Year 1 is 33%, Year 2 is 45%, Year 3 is 15%, Year 4 is 7%. If project moves forward, at t = 0 company will require to increase its inventories by $50,000, and its accounts payable will increase by $10,000. This net operating working capital will be recovered at end of projects life (t = 4). If project is moves forward, company will realize extra $600,000 in sales over each of next four years (t = 1, 2, 3, 4). Companys operating cost (not including depreciation) will equal $400,000 a year. Companys tax rate is 40 percent. At t = 4, projects economic life is complete, but it will have salvage value of $50,000. Projects WACC = 10 percent. Determine the one time cash flows/terminal cash flow related with ending project?
a) 60,000
b) 40,000
c) 50,000
d) 90,000
e) 70,000