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Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $38,000 but the book value is $32,000. The firm's tax rate for ordinary income is 30%. What is the net cash outflow for the new machine after considering the sale of the old machine?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9692965

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