Business
Business, 22.07.2021 17:40, Gattuso

Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $18,000 but the book value is $32,000. The firm's tax rate is 30%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired. A. $47,800
B. $70,000
C. $52,000
D. $40,100 20.

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Answers: 2

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Firm X is considering the replacement of an old machine with one that has a purchase price of $70,00...

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