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Given the following information, what is the initial cash flow? Purchase and install new equipment ==> $1800,000 Sale Price of old Equipment ==> $467,000 Book

Given the following information, what is the initial cash flow? Purchase and install new equipment ==> $1800,000

Sale Price of old Equipment ==> $467,000

Book Value of old equipment ==> $271,000

At time of installation, inventory will increase by $467,000 and accounts payable will increase by $328,000.

The tax rate is 40%.

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