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Machine on the initial outlay for the new machine

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Reference no: EM131428917

Blackjack Inc. wants to replace a 9-year-old machine with a new machine that is more efficient. The old machine cost $70,000 when new and has a current book value of $15,000. Blackjack can sell the machine to a foreign buyer for $14,000. Blackjack's tax rate is 35%. The effect of the sale of the old machine on the initial outlay for the new machine is

a. $14,350

b. $13,650

c. $9,100

d. $1,000

Reference no: EM131428917

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