Initial cash outlay necessary to replace existing equipment

Assignment Help Financial Management

Reference no: EM13923109

A company is evaluating the possible replacement of equipment. New equipment would cost $92,325, and sales tax on the purchase would be 6%. Both the purchase price and sales tax would be capitalized. The old equipment had an original purchase price of $70,000 and accumulated depreciation of $32,000 has been taken. The old equipment can be sold currently for $28,899, and the company pays taxes at a rate of 37%. What is the initial cash outlay necessary to replace the existing equipment? Round your answer to the nearest whole dollar.

Reference no: EM13923109

Questions Cloud

Encounter when attempting to interpret financial data : Discuss the challenges that analysts can encounter when attempting to interpret financial data. What recommendations would you give analysts to ensure ease and accuracy of data report in this situations?

Do you agree with nonaka on unique importance of knowledge : ‘In an economy where the only certainty is uncertainty, one sure source of lasting competitive advantage is knowledge.' (Ikijuro Nonaka) Do you agree with Nonaka about the unique importance of knowledge?

Explain the importance of communication protocols : Explain the importance of communication protocols. Identify the protocols in your design and provide rationale for your decision.Define the overall network architecture.

How the accounting equation relates to the components : Provide examples that show how the components of the accounting equation affect each other and how transactions affect the accounting equation.

Initial cash outlay necessary to replace existing equipment : A company is evaluating the possible replacement of equipment. New equipment would cost $92,325, and sales tax on the purchase would be 6%. Both the purchase price and sales tax would be capitalized. What is the initial cash outlay necessary to repla..

Components of ethics legality and fairness : With your analysis complete, prepare a brief summary in which you relate the components of ethics, legality, and fairness in decision making

What is the break-even price for the new phone : Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other..

How many ways can a selection of 6 coloured balls be made : At the local school there are 12 different time periods during which 370 different classes must be scheduled. How many rooms does the school need - In how many different ways can a selection of 6 coloured balls be made from a barrel containing red..

Identify and describe the historical event : Identify and describe the historical event. Analyze the historical and contemporary causes of the event. Analyze different historical interpretations of this event. Evaluate the later consequences of this event. The final paper should be 8-10 page..

User Account

All Pages