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You are contemplating the replacement of an old printing machine with a new model costing $ 5 4 , 0 0 0 . The old

You are contemplating the replacement of an old printing machine with a new model costing $54,000. The old machine, which originally cost $40,000, has 6 years of expected life remaining and the current book value of $15,000 versus the current market value of $23,000. The firm's corporate tax rate is 24 percent. If the company sells the old machine at the market value, what is the initial after-tax cash outlay for the new printing machine purchase?

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