You are contemplating the replacement of an old printing machine with a new model costing...
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You are contemplating the replacement of an old printing machine with a new model costing $66,000. The old machine, which originally cost $40,000, has 6 years of expected life remaining and the current book value of $16,000 versus the current market value of $28,000. The firm's corporate tax rate is 25 percent. If the company sells the old machine at the market value, what is the initial after-tax cash outlay for the new printing machine purchase? $39,800$40,060$40,410$40,730$41,000$4120n You are contemplating the replacement of an old printing machine with a new model costing $66,000. The old machine, which originally cost $40,000, has 6 years of expected life remaining and the current book value of $16,000 versus the current market value of $28,000. The firm's corporate tax rate is 25 percent. If the company sells the old machine at the market value, what is the initial after-tax cash outlay for the new printing machine purchase? $39,800$40,060$40,410$40,730$41,000$4120n
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