Cubbies Pty Ltd is considering the purchase of a new machine to replace an old machine. Selected cost data pertaining to the two machines is provided below.
At the end of four years, the company plans to discontinue the product line for which the machines are used. Income taxes can be ignored. Using the incremental cost approach, calculate the current period (i.e. year zero) cash flows relevant to acquiring the new machine.

Question

Cubbies Pty Ltd is considering the purchase of a new machine to replace an old machine. Selected cost data pertaining to the two machines is provided below. 
At the end of four years, the company plans to discontinue the product line for which the machines are used. Income taxes can be ignored. Using the incremental cost approach, calculate the current period (i.e. year zero) cash flows relevant to acquiring the new machine.

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The Answer of Cubbies Pty Ltd is considering the purchase of a new machine to replace an old machine. Selected cost data pertaining to the two machines is provided below. 
At the end of four years, the company plans to discontinue the product line for which the machines are used. Income taxes can be ignored. Using the incremental cost approach, calculate the current period (i.e. year zero) cash flows relevant to acquiring the new machine.

Cubbies Pty Ltd Is Considering the Purchase of a New