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Question
A new machine can be purchased for $1,800,000. It will cost $35,000 to ship and $15,000 to fine-tune the machine. The new machine will replace an older version that is fully depreciated and will be sold for $200,000. The firm's income tax rate is 35%. What is the initial outlay for capital budgeting purposes?A) $1,580,000
B) $1,630,000
C) $1,650,000
D) $1,720,000
Answer
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