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Author Question: A company is looking to purchase and replace a fixed asset for $245,000. It will sell the asset that ... (Read 78 times)

washai

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A company is looking to purchase and replace a fixed asset for $245,000. It will sell the asset that will be replaced for $46,000 but will incur a $20,000 gain upon that sale. It must also commit $30,000 of working-capital to the investment. The firm's tax rate is 35%. What is the amount of the relevant initial investment?
◦ $245,000
◦ $254,000
◦ $199,000
◦ $206,000


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Marked as best answer by washai on Mar 6, 2021

cat123

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washai

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Reply 2 on: Mar 6, 2021
Excellent


parshano

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Reply 3 on: Yesterday
:D TYSM

 

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