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The base price is $120,000, and shipping and installation costs would add another $15,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $70,000 what is the initial
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The base price is $120,000, and shipping and installation costs would add another $15,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $70,000 what is the initial year 0 cash flow for the milling machine

User John Papastergiou
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3.7k points

1 Answer

6 votes

Answer:

$-135,000

Step-by-step explanation:

The year 0 cash flow is the cost of the machine

Total cost of the machine = base price + shipping and installation costs

$-120,000 + $-15,000 = $-135,000

User Ramy Kfoury
by
4.0k points
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