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Assume that a company purchased new equipment for $40,000,000. In addition, there was an import tariff equal to 6.25% of the purchase price. Freight-in and transportation costs were $50,000. Installation of the new equipment cost $300,000 and re-enforcement of factory foundations and walls cost $450,000. The capitalized cost of this equipment that is part of the CAPEX would be computed as:

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Financial Management, Finance

Category:- Financial Management
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