Total cash outflow at time zero


Problem:

AFB, Inc. requires an investment in equipment of $600,000 to replace existing equipment. The existing equipment will produce after-tax salvage value of $ 70,000. Net woking capital equirements are increased by $ 50,000.

Required:

Question: What is the total cash outflow at time zero?

Note: Please show how to work it out.

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Accounting Basics: Total cash outflow at time zero
Reference No:- TGS0892469

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