Question: =+Problem 3.2 Refer to Problem 3.1 above. Additional information is as follows: In order to make room for the new equipment, existing assets which

=+Problem 3.2 Refer to Problem 3.1 above. Additional information is as follows:

• In order to make room for the new equipment, existing assets which the firm currently use need to be sold and can fetch $2,000, subject to capital gains tax of 30% which is payable upon realization of the capital gains.

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