Question
4. you are analyzing the purchase of new equipment . You hire a consulting firm to make recommendations. The consultant charged you $2,541. and recommended
4. you are analyzing the purchase of new equipment . You hire a consulting firm to make recommendations. The consultant charged you $2,541. and recommended the purchase of the latest model form abc corp of america. The equipment costs $75,030 and it will cost another $9,042 to modify it for special use by your firm. the equipment will be depreciated on a stright line basis over 7 years. you expect the equipment will be solf after 4 years for $28,794. use of the equipment will require an increase in your companys net working capital of $4,019 but this amount will be recovered at the end of year 4. the use of the equipment will have no effect on revenues but will save the firm $49,843 per year in before tax operating costs. your companys marginal tax rate is 34% what is the initial outlay required to fund this project to the nearest dollar?
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