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 $25,000 but the book value is $32,000.What is the net cash outflow for the new machine with consideration for the sale of the old machine?
A) $70,000
B) $45,000
C) $38,000
D) $32,000
Correct Answer:
Verified
Q1: Cash flow can be said to equal:
A)
Q2: The longer the life of an investment:
A)
Q4: The reason cash flow is used in
Q5: Under the capital cost allowance system:
A) the
Q6: Which of the following is not a
Q7: The net present value profile:
A) doesn't work
Q8: A firm is selling an old asset
Q9: The net present value method is a
Q10: Which of the following is not a
Q11: Using higher discount rates,:
A) accelerated amortization is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents