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i am analyzing the pro forma income statement of a company which uses a Incremental revenue. The company bought a new equipment for 300000 in
i am analyzing the pro forma income statement of a company which uses a Incremental revenue. The company bought a new equipment for 300000 in year zero and the old equipment have the after tax salvage value of 62500. So when calculating net capital spending this will equal out to be 237500 right? but i realize there is a an operating cost of new machine and an cost of savings of old machine, should this cost be there or is these cost incorrect
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