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Business, 24.04.2020 21:54 rudolph34

A firm is planning to purchase a new machine to replace old. The cost of machine is $400,000, shipping is $50,000 and installation is $30,000. Also the company has to train employees in order to operate the machine which cost the firm another $100,000. The company spent $50,000 for the marketing and another $20,000 for consulting previously. The company can sell the old machine for $100,000 while it has the book value of $0. The new project requires the company to invest in working capital that is $70,000. If the company’s marginal tax rate is 40%, what is the initial outlay of replacing the machine?

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A firm is planning to purchase a new machine to replace old. The cost of machine is $400,000, shippi...
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