Question: Kwickee Mart is considering replacing it's current Slurpee Machine with a new and improved model. The old machine cost $10,000 three years ago and is

Kwickee Mart is considering replacing it's current Slurpee Machine with a

Kwickee Mart is considering replacing it's current Slurpee Machine with a new and improved model. The old machine cost $10,000 three years ago and is being depreciated to zero using 5-year straight-line depreciation. This old slurpee machine has a current salvage value of $3,000. The new machine, The Super Slurpee, costs $16,000 today. What is the initial cash flow for this potential replacement project if Kwickee Mart's tax rate is 30%? A. -$13,000 B. -$12,700 C. -$16,000 D. -$13,300 30)

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