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Bridzeport Industries is considering the purchase of new equipment costing $1,280.000 to replace existing equipment that will be sold for $194,000. The new equigment is
Bridzeport Industries is considering the purchase of new equipment costing $1,280.000 to replace existing equipment that will be sold for $194,000. The new equigment is expected to have a $220,000 salvage value at the end of its 5 -year life. During the period of its use, the equipment will allow the company to produce and sell an additional 32.800 units annually at a sales price of 529 per unit. Those units wil have a variable cost of $15 per unit. The compamy will also incur an additional $86,000 in annual fixed costs. Identify the amount and timing of all cash flows related to the acquisition of the new equipment. (Enter nesative agmounts using a nesative sign preceding the number e.s. 45 or parentheses e.g. (45).)
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