LISP Inc Is Planning to Purchase a New Mixer/dubber for $50,000

question 4

Multiple Choice

LISP Inc. is planning to purchase a new mixer/dubber for $50,000. The new equipment will replace an older mixer that has been fully depreciated but has a salvage value of $5,000. Compute the net investment required for this project. Assume a marginal tax rate of 40 percent.

• A) $47,000
• B) $45,000
• C) $48,000
• D) $55,000

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