Question
Today, I need to replace an old machine with a new one that costs $4,800,000 plus $200,000 for shipping and installation. The Initial NWC needs
Today, I need to replace an old machine with a new one that costs $4,800,000 plus $200,000 for shipping and installation. The Initial NWC needs if we invest in this new machine is $250,000. The old machine is still in working condition, has zero book value, but has a salvage value of (can be sold for) $120,000. Tax rate is 25%.
Calculate the initial investment.
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Fundamentals Of Corporate Finance
Authors: Richard A. Brealey, Marcus, Alan J, Myers, Stewart C.
2nd Edition
0070074860, 9780070074866
