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Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the

Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $18,000 but the book value is $32,000. The firm's combined tax rate is 30% what is the net cash outlfow for the new machine after considering the sale of the old machine? If we disregard the effect of depreciation of the new machine, if acquired.

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