Which costs would not be included in capital budget analysis

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Problem 1: A company is considering purchasing a new machine to replace an older inefficient model. The new machine has a cost of $ 320,000. The old machine has a value of $ 9,500, Which of the following costs would NOT be included in a capital budget analysis as part of the net cash outflow of the new machine?

I. Transportation cost of the new machine
II. Installation cost of the new machine
III. Depreciation expense times the tax rate

Reference no: EM132834175

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