Question: You are given the following information. What is the initial cash outflow? Purchase and installation of new equipment $140,000 Sale price of replaced equipment $

You are given the following information. What is the initial cash outflow? Purchase and installation of new equipment $140,000 Sale price of replaced equipment $ 30,000 Book value of replaced equipment $ 50,000 When the new equipment is installed: Inventory increase $ 16,000 Accounts payable increase $ 2,000 Tax rate 30%

$118,000

$148,000

$130,000

$120,000

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