Determine the NINV required to purchase the new drill

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Reference no: EM13929472

Ten years ago T-Bone Company purchased a drill for $250,000. It was being depreciated on a straight line basis to an estimated $25,000 salvage value over a 15 year period. The firm is considering selling the old drill and purchasing a new one that would cost $500,000. The firm’s marginal tax rate is 40%. Determine the NINV required to purchase the new drill, if the old drill is sold for $100,000.

Reference no: EM13929472

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