Question
Blackjack Inc. wants to replace a 9-year-old machine with a new machine that is more efficient. The old machine cost $68681 when new and has
Blackjack Inc. wants to replace a 9-year-old machine with a new machine that is more efficient. The old machine cost $68681 when new and has a current book value of $15346. Blackjack can sell the machine to a foreign buyer for $11268. Blackjack's tax rate is 30%. What is the effect of the sale of the old machine on the initial outlay for the new machine, to the nearest dollar?
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
978-0132148238
