Question: QUESTION 33 Poon's Noodle House is considering replacing its noodle-processing machine. The new machine will cost $354.000 and will require an additional $59,000 for delivery

 QUESTION 33 Poon's Noodle House is considering replacing its noodle-processing machine.

QUESTION 33 Poon's Noodle House is considering replacing its noodle-processing machine. The new machine will cost $354.000 and will require an additional $59,000 for delivery and installation. Interest costs associated with financing the equipment purchase are estimated to be $10,000 annually. Additional net working capital of $28.000 will be needed immediately. The current machine was purchased 4 years ago at a total cost of $20,000. It is being depreciated straight-line to a zero value over 8 years. 2) If Poon sells the current noodle-processing machine for $6,000, what is the after-tax cash flow (ATSV) to Poon's Noodle House? Use 40% for the effective tax rate. $2,600 $3,600 $4,600 $7,600

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