1.The Fleming Company, a food distributor, is considering replacing a filling line at its Oklahoma City warehouse....
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1.The Fleming Company, a food distributor, is considering replacing a filling line at its Oklahoma City warehouse. The existing line was purchased several years ago for $650,000. The line's book value is $220,000, and Fleming management feels it could be sold at this time for $160,000. A new, increased capacity line can be purchased for $1,300,000. Delivery and installation of the new line are expected to cost an additional $100,000. Assuming Fleming's marginal rate is 40%, calculate the net investment for the new line.
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
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