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The Target Copy Company is contemplating the replacement of its old printing machine with a new model costing $ 43 ,000. The old machine, which originally cost $ 31 ,000, has 5 years of expected life remaining and a current book value of $ 15 ,000 versus a current market value of $ 24 ,000. Target's corporate tax rate is 32 percent.

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Question: If Target sells the old machine at market value, what is the initial after-tax outlay for the new printing machine?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170609

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