What is the net equipment cost, given the following, when a new piece of equipment replaces an old one:  Old equipment sells for $125,000  Book value of old equipment 22,000  Tax Rate 40%  New equipment cost 800,000  Site survey 18,000  Installation cost 20,000

Question Two

Equipment is sold for $30,000 at the end of a project. The working capital return is $50,000. The tax rate is 40%. What is the terminal cash flow?

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