A company is considering replacing extrusion equipment on its - 14585

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yousafbhutta

yousafbhutta

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Request Description

 

A company is considering replacing extrusion equipment on its production line. The old equipment can be sold for $100,000 and has a book value of $60,000. If it has a 40% tax rate, what is the total incremental cash flow related to selling the old equipment?
Answer
a. $100,000
b. $84,000
c. $16,000
d. $60,000

Solution Description

 

A company is considering replacing extrusion equipment on