Sarasota Industries is considering the purchase of new equipment costing $1,480,000 to replace existing equipment that will be sold for $187,000. The new equipment is expected to have a $233,000 salvage value at the end of its 5-year life. During the period of its use, the equipment will allow the company to produce and sell an additional 34,200 units annually at a sales price of $20 per unit. Those units will have a variable cost of $13 per unit. The company will also incur an additional $70,000 in annual fixed costs. Identify the amount and timing of all cash flows related to the acquisition of the new equipment. (Enter negative amounts using a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Cash Flow Purchase of new equipment Salvage of old equipment Sales revenue Variable costs Additional fixed costs Salvage of new equipment Timing > > > > tA $ Amount

Sarasota Industries is considering the purchase of new equipment costing $1,480,000 to replace existing equipment that will be sold for $187,000. The new equipment is expected to have a $233,000 salvage value at the end of its 5 -year life. During the period of its use, the equipment will allow the company to produce and sell an additional 34,200 units annually at a sales price of $20 per unit. Those units will have a variable cost of $13 per unit. The company will also incur an additional $70,000 in annual fixed costs. Identify the amount and timing of all cash flows related to the acquisition of the new equipment. (Enter negative amounts using a negative sign preceding the number eg. -45 or parentheses eg. (45).) Sarasota Industries is considering the purchase of new equipment costing $1,480,000 to replace existing equipment that will be sold for $187,000. The new equipment is expected to have a $233,000 salvage value at the end of its 5 -year life. During the period of its use, the equipment will allow the company to produce and sell an additional 34,200 units annually at a sales price of $20 per unit. Those units will have a variable cost of $13 per unit. The company will also incur an additional $70,000 in annual fixed costs. Identify the amount and timing of all cash flows related to the acquisition of the new equipment. (Enter negative amounts using a negative sign preceding the number eg. -45 or parentheses es. (45).)