Given the following information, what is the initial net cash outflow? Purchase Price of the new machine Rs. 80000 Shipping and Installation Charges Rs. 20000 Sale Price of Old Machine Rs. 60000 Book Value of old machine Rs. 20000 Inventory increase if installed Rs. 30000 Accounts payable increase if installed Rs. 10000 Tax rate if applicable 15 % (a) - Rs 10000 (b) - Rs 70000 (c) - Rs 30000 (d) - Rs 65000
Given the following information, what is the initial net cash outflow? Purchase Price of the new machine Rs. 80000 Shipping and Installation Charges Rs. 20000 Sale Price of Old Machine Rs. 60000 Book Value of old machine Rs. 20000 Inventory increase if installed Rs. 30000 Accounts payable increase if installed Rs. 10000 Tax rate if applicable 15 % (a) - Rs 10000 (b) - Rs 70000 (c) - Rs 30000 (d) - Rs 65000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Given the following information, what is the initial net cash outflow? Purchase Price of
the new machine Rs. 80000 Shipping and Installation Charges Rs. 20000 Sale Price
of Old Machine Rs. 60000 Book Value of old machine Rs. 20000 Inventory increase if
installed Rs. 30000 Accounts payable increase if installed Rs. 10000 Tax rate if
applicable 15% (a) - Rs 10000 (b) - Rs 70000 (c) - Rs 30000 (d) - Rs 65000
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