Initial after-tax outlay for new printing machine


Problem:

Due to expected increases in sales, the Target Copy Company is contemplating purchasing a new printing machine costing $ 364 . To accomodate the new sales, the company will need to purchase additional inventory of $ 30 , part of which will be financed by an increase in accounts payable of $ 18 . Target's corporate tax rate is 41 percent.

Required:

Question: What is the initial after-tax outlay for the new printing machine?

Note: Provide support for your underlying principle.

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Accounting Basics: Initial after-tax outlay for new printing machine
Reference No:- TGS0889425

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