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pduvin pduvin
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6 years ago
A company is considering purchasing a new machine, at a cost of $50,000. This amount will be written off over 5 years at $10,000 per year. In the first year the company will have to increase its accounts receivable by $4,000, and inventory by $8,000. The disposal value of the machine being replaced is $1,500 and will be used to offset the amount borrowed for the new machine. What is the initial working capital investment required for the purpose of capital budgeting?
A) $8,000
B) $60,500
C) $10,500
D) $12,000
E) $4,000
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
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btpsandbtpsand
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pduvin Author
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6 years ago
Thanks for your help!!
dianeflunder
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Yesterday
Helped a lot
Harvinder
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2 hours ago
Thanks
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