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The Lounge is considering replacing its lighting system. The new lights will cost $16,000 and can be installed for $2,500. The old light fixtures were
The Lounge is considering replacing its lighting system. The new lights will cost $16,000 and can be installed for $2,500. The old light fixtures were depreciated to zero but can be sold to Secondhand Sam for $1,000. If the Lounge has a 35 percent tax rate, the initial cash outflow for the new lighting system is
a. | $16,000. | |
b. | $17,500. | |
c. | $17,850 | |
d. | $18,500. |
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