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A company is considering replacing an old machine. The new machine costs $ 1 0 , 0 0 0 but, because of its increased efficiency,

A company is considering replacing an old machine. The new machine costs $10,000 but, because of its increased efficiency, it will allow the company to reduce inventory on hand by $2,000 when the old machine is replaced. The old machine also has a $1,000 net salvage value. Calculate the Year 0 cash flow the company should use when evaluating the purchase of the new machine.
These are the only answers
$9,000
- $10,000
- $11,000
- $13,000
- $7,000

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