Pioneer is replacing an old machine that cost $80,0005 years ago with a new machine...

90.2K

Verified Solution

Question

Accounting

Pioneer is replacing an old machine that cost $80,0005 years ago with a new machine that will cost $225,000. Shipping and installation will cost an additional $20,000. The old machine has a book value of $15,000 but will be sold as scrap for $5,000. Due to the increased sales, there is a need to finance $8,000 of additional inventory and $10,000 of additional accounts receivables. Accounts payable will provide $6,000. If the ordinary income tax rate is 40% and the capital gains tax rate is 30%, what is the NINV?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students