The Target Copy Company is contemplating the replacement of its old printing machine with a new model
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- The Target Copy Company is contemplating the replacement of its old printing machine with a new model costing $80,000. The old machine, which originally cost $40,000, has 6 years of expected life remaining and a current book value of $18,000 versus a current market value of $19,000. Target's corporate tax rate is 40 percent. If Target sells the old machine at market value, what is the initial after-tax outlay for the new printing machine?
Related Book For
Principles of managerial finance
ISBN: 978-0132479547
12th edition
Authors: Lawrence J Gitman, Chad J Zutter
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