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A four-year-old asset is to be replaced as part of a capital project. It originally cost $20,000 and has a depreciation (straight line) life of

A four-year-old asset is to be replaced as part of a capital project. It originally cost $20,000 and has a depreciation (straight line) life of 10 years. Its market value is currently $9,000. The firm's marginal tax rate is 34%. The new asset will cost $55,000. Calculate the initial outlay of the new asset.

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