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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
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$510,000
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$530,000
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$560,000
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