Question: Excel with formula please 2 pts Question 24 An office is considering purchasing a new IT system at a cost of $60,000 The system should
2 pts Question 24 An office is considering purchasing a new IT system at a cost of $60,000 The system should result in a $45,000 improvement in yearly sales, resulting in an additional $20,000 in cost of goods sold. The additional sales will require a $12,000 increase in current assets and an $8,000 increase in current liabilities. The new system depreciates at $15,000 each year, and that office's average tax rate is 35% After 3 years, the system will be obsolete and need to be replaced. In the start of the 4th year, after 3 full years of depreciation, the system will be sold off for $12,000 What is the annual incremental operating cash flow in year 1
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
