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What is the net cost of the investment in the new machine

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Question - A company decides to invest in replacing an old machine. The company buys a new machine for $110,000. It sells the old machine for $15,000. The old machine had a book value of $22,000 at the time it was sold. The company's tax rate is 35%. What is the net cost of the investment in the new machine (to be used in capital budgeting analysis)?

a. $15,000.00

b. $92,550.00

c. $110,000.00

d. $95,000.00

Reference no: EM133069454

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