Lasalle Industries is considering the purchase of a new machine that will cost $
ID: 2647971 • Letter: L
Question
Lasalle Industries is considering the purchase of a new machine that will cost $250,000, plus an additional $10,000 to ship and install. The new machine will have a 5 - year useful life and will be depreciated to zero using the straight - line method. The machine is expected to have a salvage value of $30,000 at the end of year five. LaSalle?s income tax rate is 40%. The additional net working capital from this project of $50,000 is expected to return to its pre ?project level upon termination. What is the non - operating terminal cash flow of the machine? A. $68,000 B. $48,000 C. - $32,000 D. $80,000Explanation / Answer
i think that
$32,000
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