Question
33. Sam Corp. is considering purchase of new equipment whose data are shown below. This equipment should be used with tool X the firm now
33. Sam Corp. is considering purchase of new equipment whose data are shown below. This equipment should be used with tool X the firm now owns, and if this equipment is not purchased, the tool X would be sold for $15,000. What is the projects Year 0 cash flow?
Equipment cost $60,000
Increase in NOWC $15,000
Tax rate 35%
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Cornerstones Of Financial Accounting
Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone
2nd Canadian Edition
0176707123, 978-0176707125
