Topsider Inc

question 11

Multiple Choice

Topsider Inc. is considering the purchase of a new leather-cutting machine to replace an existing machine that has zero salvage value. The net salvage value of the new machine is $6,000 and the return of net working capital is $3,520. Which of the following is the terminal cash value of the new machine?

• A) $6,000
• B) $3,520
• C) $9,520
• D) $7,000
• E) $3,000

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