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Smiggle Company is considering to open a new store. The cash flow attributable to the new production machine for the new store are shown below:
Smiggle Company is considering to open a new store. The cash flow attributable to the new production machine for the new store are shown below: Import duties Salvage value Sales proceeds Cost of new machine Increase in inventories Training fee (paid last month) Transportation cost Installation cost RM 14,000 11,000 210,000 268,000 77,000 10,000 25,000 16,000 The machine's expected useful life is 5 years. Tax savings due to sale of old asset is RM31,000. Required: Compute the followings: i. Net initial outlay ii. Terminal cash flow
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