Initial after-tax outlay for the new printing machine

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Lowell Company is contemplating the replacement of its old printing machine with a new model costing $60,000. The old machine, which originally cost $40,000, has 6 years of expected life remaining and a current book value of $30,000 versus a current market value of $24,000. Lowell's corporate tax rate is 22 percent. If Lowell sells the old machine at market value, what is the initial after-tax outlay for the new printing machine?

Reference no: EM132770444

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