A firm would like to replace a machine that originally cost $15,000. The new machine will...
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A firm would like to replace a machine that originally cost $15,000. The new machine will cost $100,000, will require $5,000 to install and $3,000 to ship. They will have to initially increase networking capital by $5,000. They can sell the old machine today for $25,000 and have a 40% tax rate. The new machine will be depreciated over 10 years. Find the initial outlay and depreciation. A firm would like to replace a machine that originally cost $15,000. The new machine will cost $100,000, will require $5,000 to install and $3,000 to ship. They will have to initially increase networking capital by $5,000. They can sell the old machine today for $25,000 and have a 40% tax rate. The new machine will be depreciated over 10 years. Find the initial outlay and depreciation.
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To find the initial outlay and depreciation for the replacement of the machine we need to consider t... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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