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The pittsburg Press is considering replacing an existing press with a more efficient press. The new press costs $55,000 and requires $5,000 in installation costs.
The pittsburg Press is considering replacing an existing press with a more efficient press. The new press costs $55,000 and requires $5,000 in installation costs. The old press was purchased 2 years ago for an installed cost of $46,000 and can be sold for $26,000 net of any removal costs today. Both presses are depreciated under the MACRS 5 year recovery schedule. The firm is in 21% marginal tax rate. Calculate the total inital (year 0) cash flow. (nearest dollar)
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