Cash outflow associated with the acquisition

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Given the following information, what is the required cash outflow associated with the acquisition of a new machine; that is, in a project analysis, what is the cash outflow at t = 0?

Purchase price of new machine $8,000  

Installation charge           2,000  

Market value of old machine      2,000  

Book value of old machine           1,000  

Inventory decrease if new machine is installed  1,000  

Accounts payable increase if new machine is installed    500  

Tax rate                35%

Cost of capital    15%

Reference no: EM13953677

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