Question: Johnson Electronics purchased a $ 1 5 , 0 0 0 machine to replace an old machine that is sold today for $ 6 ,

Johnson Electronics purchased a $15,000 machine to replace an old machine that is sold today for $6,000. Both machines are in the same class, with a 20% depreciation rate. The new machine allows the company to hold lower inventory, so the company will decrease inventory by $2,000. What are the initial cash flows associated with this replacement project?
$7,000
$11,000
$9,000
$8000
 Johnson Electronics purchased a $15,000 machine to replace an old machine

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