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Question 9 Calculate the initial investment required for capital budgeting purposes given the following information: Purchase and installation of new equipment $24,000 Sale price of

Question 9

Calculate the initial investment required for capital budgeting purposes given the following information:

Purchase and installation of new equipment $24,000

Sale price of replaced equipment $8,000

Book value of replaced equipment $6,000

When the new equipment is installed, it will require $2,000 in working capital.

Tax rate is 30%.

O-$18,600

O-$18,000

O-$19,800

O -$20,000

O -$26,000

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