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Texas Tires is considering replacing an old machine with a new, more efficient, one. The new machine will cost $1.2 million. The old machine originally

Texas Tires is considering replacing an old machine with a new, more efficient, one. The new machine will cost $1.2 million. The old machine originally cost $714,000 4 years ago and was being depreciated straight line over a 7 year life. The old machine can now be sold for $325,000. The firm has a 30 % tax rate. Calculate the initial outlay on the new machine.

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