Question: Nargo inc. wants to replace a 7 year old machine with a new machine that is more efficient. The old machine cost $50000, when new

Nargo inc. wants to replace a 7 year old machine with a new machine that is more efficient. The old machine cost $50000, when new and has a current book value of $10000. Margo can sell the machine to a foreign buyer for $12000. Margo's tax rate is 30%. The effect of the sale of the old machine on the intial outlay for the new machine is? -$12,600 -$11,400 -$8,400 -$0

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