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Question 11 1 pts Metro Corporation will spend $1 million for special manufacturing equipment. Shipping and installation charges will amount to $175,000 and an initial
Question 11 1 pts Metro Corporation will spend $1 million for special manufacturing equipment. Shipping and installation charges will amount to $175,000 and an initial increase in net working capital of $50,000 will be required. The equipment will replace an existing machine that has a salvage value of $85,000 and a book value of $110,000. If Metro has a current marginal tax rate of 34%, what is the amount of the initial outlay for this project? O $1,140,000 $1,243,700 O $1,233,500 $1,131.500 0 $1,225,000 Question 11 1 pts Metro Corporation will spend $1 million for special manufacturing equipment. Shipping and installation charges will amount to $175,000 and an initial increase in net working capital of $50,000 will be required. The equipment will replace an existing machine that has a salvage value of $85,000 and a book value of $110,000. If Metro has a current marginal tax rate of 34%, what is the amount of the initial outlay for this project? O $1,140,000 $1,243,700 O $1,233,500 $1,131.500 0 $1,225,000
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