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JBM, Inc. requires an investment in equipment of $500,000 to replace existing equipment. The existing equipment will produce after tax salvage value of $30,000. Net

JBM, Inc. requires an investment in equipment of $500,000 to replace existing equipment. The existing equipment will produce after tax salvage value of $30,000. Net working capital requirements are increased by $60,000. What is the total cash outflow at time zero (i.e. initial outlay)?

$590,000

$510,000

$530,000

$560,000

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