The purchase price of the proposed new equipment is Tk 7,20,000. Shipping and installation costs are estimated
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The purchase price of the proposed new equipment is Tk 7,20,000. Shipping and installation costs are estimated to be Tk 1,00,000. It will take an additional Tk 32,000 to modify it for use in the production plant. It will replace an old equipment that currently has a book value of Tk 75,000. It can be sold for net of Tk 1,00,000 now.
The new equipment will require an infusion of Tk 1,00,000 in working capital. Marginal tax rate is 40 percent.
Determine the initial Outlay, IO, for the investment proposal.
Related Book For
Accounting Information Systems
ISBN: 978-0133428537
13th edition
Authors: Marshall B. Romney, Paul J. Steinbart
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