Question: #12. A project to replace an old machine with a new one is under consideration. The new machine costs $11700 and requires an additional working

#12. A project to replace an old machine with a new one is under consideration. The new machine costs $11700 and requires an additional working capital investment of $750. The old machine is expected to have a $750 salvage value. Calculate the initial outlay of this replacement project assuming the book value of the old asset is $1500. The firms marginal tax rate is 55%.

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