The hot air company is contemplating the replacement of its


The Hot Air Company is contemplating the replacement of its old printing machine with a new model costing $ 8 0,000. The old machine, which originally cost $40,000, has 6 years of expected life remaining and a current book value of $ 28 ,000 versus a current market value of $ 13 ,000. The firm's corporate tax rate is 40 percent. If the company sells the old machine at market value, what is the initial after-tax outlay for the new printing machine? Cash outflow must be a negative number! Round it a whole dollar and do not include the $ sign.

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Financial Management: The hot air company is contemplating the replacement of its
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