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Peyk Corporation is going to purchase a new machine for its new product line. Given the following information, what is the required cash outflow associated
Peyk Corporation is going to purchase a new machine for its new product line. Given the following information, what is the required cash outflow associated with the acquisition of the new machine? - Purchase price of new machine $14,000 - Installation Charge $3,000 - Shipment charge $1,000 - Market value of old machine $3,000 - Book value of old machine $1,000 - Inventory increase if new machine is installed $500 - Tax rate 40% - Cost of capital 10% $23,000 $16,300 $18,000 $14,000
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