Capital Budgeting 3 Homework ( 64 points) 1. Your firm is thinking about investing in a new machine. Use the information below to find the machine's net cash outlay. Yeart 245,000 Cost of New Asset Old Asset Book Value Proceeds on Sale Initial Purchase Price Capital Gains Tax Rate Ordinary Income Tax Rate Decrease in Working Capital 0 110,000 100,000 15.00% 30.00% 24,000 CB Homework 3 Submission Template Problem 1 INPUTS Net Cash Outlay Cost of New Asset Installation Costs Old Asset Book Value Proceeds on Sale Initial Purchase Price Capital Gains Tax Rate Ordinary Income Tax Rate 1 in Working Capital OUTPUTS Cash Distribution Table Capital Gain Recaptured Depreciation Proceeds on Sale Cost of New Asset Installation Costs Proceeds on Sale, Old Asset Taxes on Proceeds on Sale Decrease in Working Capital Net Cash Outlay Capital Budgeting 3 Homework ( 64 points) 1. Your firm is thinking about investing in a new machine. Use the information below to find the machine's net cash outlay. Yeart 245,000 Cost of New Asset Old Asset Book Value Proceeds on Sale Initial Purchase Price Capital Gains Tax Rate Ordinary Income Tax Rate Decrease in Working Capital 0 110,000 100,000 15.00% 30.00% 24,000 CB Homework 3 Submission Template Problem 1 INPUTS Net Cash Outlay Cost of New Asset Installation Costs Old Asset Book Value Proceeds on Sale Initial Purchase Price Capital Gains Tax Rate Ordinary Income Tax Rate 1 in Working Capital OUTPUTS Cash Distribution Table Capital Gain Recaptured Depreciation Proceeds on Sale Cost of New Asset Installation Costs Proceeds on Sale, Old Asset Taxes on Proceeds on Sale Decrease in Working Capital Net Cash Outlay