Question: A firm would like to replace a machine that originally cost $ 1 5 , 0 0 0 . The new machine will cost $

A firm would like to replace a machine that originally cost $15,000.The new machine will cost $100,000, will require $5,000 to install and $3,000 to ship.They will have to initially increase networking capital by $5,000.They can sell the old machine today for $25,000 and have a 40% tax rate.The new machine will be depreciated over 10 years. Find the initial outlay.
A firm would like to replace a machine that originally cost

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