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Firm X is considering the replacement of an old machine with one that has a purchase price of $ 7 0 , 0 0 0

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 $24,000 but the book value is $37,000. The firm's combined tax rate is 38%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired.

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