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please add formulas. thank you Income tax rate = 30% Capital gains tax rate = 15% Your company is considering investing in a new asset
please add formulas. thank you
Income tax rate = 30% Capital gains tax rate = 15% Your company is considering investing in a new asset that costs $185,500. The old asset, which has a book value of $100,000, can be sold for $100,000. The purchase price of the old asset was $450,000. The new asset will allow you to keep less inventory on hand You believe that you will be able to reduce your inventory by $6,000. What is the net cash outlay for this asset? 2 Using the chart below, calculate the net cash outlay for this investment. Cost of New Asset $450,000 Installation Costs 13,000 Old Asset Book Value 125.000 Proceeds on Sale 300.000 200.000 Initial Purchase Price 22.000 Increase in Working CapitalStep by Step Solution
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