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The Fleming Company, a food distributor, is considering replacing a filling line at its Oklahoma City warehouse. The existing line was purchased several years ago
The Fleming Company, a food distributor, is considering replacing a filling line at its Oklahoma City warehouse. The existing line was purchased several years ago for $ The lines book value is $ and Fleming's management feels it could be sold at this time for $ A new, increased capacity line can be purchased for $ and will require and increase in NWC of $ Delivery and installation of the new line are expected to cost $ and respectively. Assuming Flemings marginal tax rate is calculate the net investment for the new line.
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