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Bridgeport Industries is considering the purchase of new equipment costing $1,350,000 to replace existing equipment that will be sold for $177,000. The new equipment is

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Bridgeport Industries is considering the purchase of new equipment costing $1,350,000 to replace existing equipment that will be sold for $177,000. The new equipment is expected to have a $228,000 salvage value at the end of its 4-year life. During the period of its use, the equipment will allow the company to produce and sell an additional 34,300 units annually at a sales price of $27 per unit. Those units will have a variable cost of $12 per unit. The company will also incur an additional $83,000 in annual fixed costs. Identify the amount and timing of all cash flows related to the acquisition of the new equipment. (Enter negative amounts using a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Cash Flow Timing Amount Purchase of new equipment Salvage of old equipment Sales revenue Variable costs Additional fixed costs Salvage of new equipment

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