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Flextech Inc. is considering a project that will require new equipment costing $150,000. It will replace old equipment with a

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Flextech Inc. is considering a project that will require new equipment costing $150,000. It will replace old equipment with a book value of $35,000 that can be sold on the secondhand market for $75,000. The company’s marginal tax rate is 35%. Calculate the project’s initial outlay.

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Sale of old equip 75 000 75 000 Book value …View the full answer


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My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional. Since 2012 I am providing home tutions.
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Practical financial management

Practical financial management

ISBN: 978-0324422634

5th Edition

Authors: William r. Lasher

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Question Posted: September 13, 2012 03:46:29
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