Bryson Sciences is planning to purchase a high-powered microscopy machine for $383,000 and incur an additional $30,800 in installation expenses. It is replacing older microscopy equipment that can be sold for $116,100, resulting in taxes from a gain on the sale of $42,600. Because of this transaction, current assets will increase by $20,000 and current liabilities will increase by $5,100. Calculate the initial cash flow in the high-powered microscopy machine.
Bryson Sciences is planning to purchase a high-powered microscopy machine for $383,000 and incur an additional $30,800 in installation expenses. It is replacing older microscopy equipment that can be sold for $116,100, resulting in taxes from a gain on the sale of $42,600. Because of this transaction, current assets will increase by $20,000 and current liabilities will increase by $5,100. Calculate the initial cash flow in the high-powered microscopy machine.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 22P: The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500,...
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Bryson Sciences is planning to purchase a high-powered microscopy machine for $383,000 and incur an additional $30,800 in installation expenses. It is replacing older microscopy equipment that can be sold for $116,100, resulting in taxes from a gain on the sale of $42,600. Because of this transaction, current assets will increase by $20,000 and current liabilities will increase by $5,100.
Calculate the initial cash flow in the high-powered microscopy machine.
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