Find net cash outflow for new machine-sale of old machine


problem:

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 $38,000 but the book value is $32,000. The firm's tax rate for ordinary income is 30%.

Required:

Question 1) What is the net cash outflow for the new machine after considering the sale of the old machine? Solve the problem and show all work.

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Operation Management: Find net cash outflow for new machine-sale of old machine
Reference No:- TGS0880746

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