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Bravado Company is considering to replace its old equipment with a new one.The old equipment had a net book value of 100,000 and 4 remaining
Bravado Company is considering to replace its old equipment with a new one.The old equipment had a net book value of 100,000 and 4 remaining useful years with 25,000 depreciation each year.The old equipment can be sold at 80,000.The new equipment costs 160,000, have a 4-year life.Cash savings on operating expenses before 40% taxes amount to 50,000 per year.
What is the amount of investment in the new equipment?
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