Question
AFB, Inc. requires an investment in equipment of $600,000 to replace existing equipment. The existing equipment will produce after tax salvage value of $70,000. Net
AFB, Inc. requires an investment in equipment of $600,000 to replace existing equipment. The existing equipment will produce after tax salvage value of $70,000. Net working capital requirements are increased by $50,000. What is the total cash outflow at time zero (i.e. initial outlay)?
(this answer is NOT correct)
Selected Answer:$650,000
Answers:
A.$720,000
B. $580,000
C.$530,000
D. $650,000
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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
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