Adam Smith is considering automating his pin factory with the purchase of a $475,000 new machine in replacement of old machine. Shipping and installation would cost $6,000. The old machine having a depreciated book value of $200,000 is sold with market value of $300,000. The pin factory requires an additional working capital of $80,000. The machine has a useful life of 4 years The firm's marginal tax rate is 40 percent. The incremental cash outflow at time period 0 is closest to
Get Answers For Free
Most questions answered within 1 hours.