Estimating net investment outlay


The cost of a new machine is $70,000 plus an additional $8,000 for freight and setup costs. The old machine that is being replaced has a book value of $15,000 and can be sold for $7,000. An investment of $15,000 in working capital is also required. The marginal tax rate is 30%. What is the net investment outlay?

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Finance Basics: Estimating net investment outlay
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