Question: Problem 11-3 Flextech Inc. is considering a project that will require new equipment costing $150,000. It will replace old equipment with a book value of

Problem 11-3

Flextech Inc. is considering a project that will require new equipment costing $150,000. It will replace old equipment with a book value of $35,000 that can be sold on the secondhand market for $65,000. The company's marginal tax rate is 37%. Calculate the project's initial outlay.

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