Question: 3. 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

3. 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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