Question: =+LG 3 LG 4 E115 Hoffmann-La Roche is considering purchasing a capsule counting and packing machine for 5,500,000 and incurs an additional 130,000 in installation

=+LG 3 LG 4 E11–5 Hoffmann-La Roche is considering purchasing a capsule counting and packing machine for €5,500,000 and incurs an additional €130,000 in installation expenses.

It is replacing older machines that can be sold for €250,000, resulting in taxes from a gain on the sale of €20,000. Because of this transaction, current assets will increase by €150,000, and current liabilities by €50,000. Calculate the initial investment in the new machine.

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