QRW Corp needs to replace an old lathe with a new, more efficient ...

[jenna1]

QRW Corp needs to replace an old lathe with a new, more efficient model. The old lathe was
  purchased for 50,000 nine years ago and has a current book value of 5,000.
 
  (The old machine is
  being depreciated on a straight-line basis over a ten-year useful life.) The new lathe costs 100,000.
  It will cost the company 10,000 to get the new lathe to the factory and get it installed. The old
  machine will be sold as scrap metal for 2,000. The new machine is also being depreciated on a
  straight-line basis over ten years. Sales are expected to increase by 8,000 per year while operating
  expenses are expected to decrease by 12,000 per year. QRW's marginal tax rate is 40. Additional
  working capital of 3,000 is required to maintain the new machine and higher sales level. The initia
  outlay for the new machine is
  A) 111,000. B) 113,000. C) 109,800. D) 112,200.

Question 2

In a lockbox system, customer payments are collected directly by the bank and deposited
  immediately in the corporation's account.
 
  Indicate whether the statement is true or false

[morrie123456]

Answer to Question 1

C

Answer to Question 2

TRUE

[jenna1]

Thanks for the timely response, appreciate it

[okolip]

Gracias!