Suppose that a company is about to decide on a replacement investment. The old machine on hand was purchased two years ago for 65,000 TL. Straight-line depreciation is employed for the old machine where useful life is 5 years. The current market value of the old machine is determined as 23,000 TL. The new machine that will replace the old one would cost 140,000 TL excluding 4,000 TL shipping and 2,000 TL installation costs. The acquisition of the new machine will increase accounts receivable by 9,000 TL, the inventory by 13,000 TL, and accounts payable by 15,000 TL. The corporate tax rate is 30%. What would be the initial investment outlay? A) 125.200 TL B) 118.200 TL C) 123.000 TL D) 134.200 TL E) Other
Suppose that a company is about to decide on a replacement investment. The old machine on hand was purchased two years ago for 65,000 TL. Straight-line
A) 125.200 TL
B) 118.200 TL
C) 123.000 TL
D) 134.200 TL
E) Other
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
