What is the net cash outflow for the new machine

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Reference no: EM13222753

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 $38,000 but the book value is $32,000. The firm's tax rate for ordinary income is 30%. What is the net cash outflow for the new machine after considering the sale of the old machine?

Reference no: EM13222753

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