Question: N.I.N. Tack Co. is evaluating a new press that will cost $45,000 and will require an additional $3,000 for employee training. Shipping will cost $1,000
N.I.N. Tack Co. is evaluating a new press that will cost $45,000 and will require an additional $3,000 for employee training. Shipping will cost $1,000 and the setup charges are $500. N.I.N. will trade its existing press for a $5,000 credit toward the purchase price. If the old machine has been completely depreciated, what is the initial cash flow?
| a. | $44,500 | |
| b. | $49,500 | |
| c. | $54,500 | |
| d. | $48,000 | |
| e. | $46,000 |
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