What is net investment for decision making purposes

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Question - An old machine costing 50,000 will be traded in for a new machine costing 120,000 inclusive of freight charges of 1,200. The trade in value of the old machine is 7,000. If the new machine is acquired, overhauling costs of 6,000 can be avoided, income taxes are 40%. Additional working capital of 10,000 will be needed to support the planned operation of the new machine. What is net investment for decision making purposes?

Reference no: EM133165332

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