Jones Crusher Company is evaluating the proposed acquisition of a new machine. The machine will cost $190,000, and it will cost another $33,000 to modify it for special use by the firm. The machine falls into the MACRS 3-year class, and it will be sold after 3 years of use for $110,000. The machine will require an increase in net working capital of $9,000 and will have no effect on revenues, but is expected to save the firm $90,000 per year in before-tax operating costs, mainly labour. The company's marginal tax rate is 40%. What is the initial cash flow for the project?
◦ -$42,000
◦ -$190,000
◦ -$199,000
◦ -$223,000
◦ -$232,000
A proposed molecular mechanism of prion diseases.
Typical Startup Cost Categories Cont.
ECG MACHINE
Ecg MACHINE
ECG machine
question in cost accounting