Question: Compute the initial cash flow An analyst has collected the following information on a replacement project: Purchase price of the new machine $8,000 Shipping and

Compute the initial cash flow An analyst has collected the following

Compute the initial cash flow

An analyst has collected the following information on a replacement project: Purchase price of the new machine $8,000 Shipping and installation charge 2,000 Sale price of old machine 6,000 Book value of old machine 2,000 Inventory increase if the new machine is installed 3,000 Accounts payable increase if the new machine is installed 1,000 Marginal tax rate 25%

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