mallorywoods8
mallorywoods8
26.11.2019 • 
Business

Earthscape corporation plans to spend $2 million for new equipment. shipping and installation charges will amount to $200,000 and an initial increase in net working capital of $50,000 will be required. the equipment will replace older, less efficient equipment. the old equipment has a book value of $75,000, but earthscape can sell it for $100,000. if earthscape has a 21% corporate tax rate, what is the amount of their initial outlay for this project?

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