What alm net cash investment at the time of purchase

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Problem 1: American Industrial Manufacturing (AIM) is replacing an equipment purchased 5 years ago for $45,000 with a new one costing $75,000 cash. The original equipment is being depreciated on a straight-line basis over 15 years to a zero-salvage value; AIM will sell this old equipment to a third party for $18,000 cash. The new equipment will be depreciated on a straight-line basis over 10 years to a zero-salvage value. Assuming a 40% marginal tax rate. AlM's net cash investment at the time of purchase if the old equipment is sold and the new one purchased is

Reference no: EM132753214

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