Machine will require new inventory

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Reference no: EM13731595

ABC Co. is considering the purchase of a new machine. The purchase price is $20,000. Shipping is $1,250 and installation is $2,750. The machine will require new inventory of $3,000 of which 70% will be on credit. The Initial investment is ___ and the Basis for Depreciation is ____.

$27,000; $27,000

$24,900; $24,000

$26,100; $24,000

$25,000; $25,000

Reference no: EM13731595

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