Homework Answers
| A | Cost of new machine = | 85000 | |||
| Post tax | |||||
| Tax shield on loss on sale of old machine | 4550 | =(34000-21000)*35% | |||
| Sales of old machine | 21000 | ||||
| B | Total cash received on sale = | 25550 | |||
| C=A-B | Net cash outflow | 59450 | |||
| ans= | 59450 | ||||
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