Q 14

Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $25,000 but the book value is $32,000. What is the net cash outflow for the new machine with consideration for the sale of the old machine? A) $70,000 B) $45,000 C) $38,000 D) $32,000

Multiple Choice