The Glendale Construction Company is considering the purchase of a new crane. Its cost would be $500,000.

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The Glendale Construction Company is considering the purchase of a new crane. Its cost would be $500,000. If it were to make the purchase, the company would sell an old crane, which still has a book value of $100,000 and which it could probably sell in the second-hand market for $70,000. If the tax rate is 40 percent, what would be the actual cash investment in the new crane?
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Managerial Economics

ISBN: 978-0133020267

7th edition

Authors: Paul Keat, Philip K Young, Steve Erfle

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