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Company AZERTY is considering the purchase of a new production machine. The price of this new machine is 100.000 euros and win replace an old
Company AZERTY is considering the purchase of a new production machine. The price of this new machine is 100.000 euros and win replace an old machine. Installation and shipping costs are 12,500 euros and 24,000 euros, respectively. In addition, when buying the new machine, net working capital needs to be increased immediately (at time 0) by 7.000 euros. The old machine will be sold (at time 0) for 20,000 euros and its book value equals 10.000 euros. The original cost of the old machine was 70.000 euros. Calculate the Net Investment (NINV), assuming a marginal tax rate of 40%. O 136,500 O 119,500 O 127.500 O 131,500 O No
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