Assignment:
The purchase of equipment that has an invoice price of $450,000. Paid the consulting firm $12,000 for its report. The cost of shipping and installation is $50,000. The equipment will be depreciated on a straight-line basis over its life of 10 years, assuming no salvage value. The equipment will replace existing assets that have a current book value of $100,000 and which could be sold for $150,000 will be required to maintain the equipment and to support higher sales. The marginal tax rate is 40%. Calculate the initial outlay required to fund this project. Show work please!