Question
The snow plowing company is considering replacing their current snow plowing machine. The company purchased the machine 6 years ago for $503,000. The machine is
The snow plowing company is considering replacing their current snow plowing machine. The company purchased the machine 6 years ago for $503,000. The machine is fully depreciated and the market value of the machine is $27,000. The companys tax rate is 39%. The new machine price is $647,000. What is the incremental cash flow after replacement (i.e., after selling the current snow plowing machine and purchasing a new machine)? Don't write the $ symbol; round your answer to 2 decimal places. (PLEASE WRITE YOUR ANSWER IN THE FOLLOWING FORMAT: EXAMPLE: -567356.00)
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