Question
Given the following information, what is the initial cash flow? Purchase and install new equipment ==> $1628,000 Sale Price of old Equipment ==> $414,000 Book
Given the following information, what is the initial cash flow? Purchase and install new equipment ==> $1628,000
Sale Price of old Equipment ==> $414,000
Book Value of old equipment ==> $375,000
At time of installation, inventory will increase by $615,000 and accounts payable will increase by $252,000.
The tax rate is 40%.
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How Finance Works
Authors: Mihir Desai
1st Edition
1633696707, 978-1633696709
