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johnpaech johnpaech
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4 years ago
The incremental cash flow that the Krusty Krab will incur today (Year 0) if they elect to upgrade to the new grill is closest to:
A) -80,000
B) -50,000
C) -46,500
D) +30,000
Textbook 

Corporate Finance: The Core


Edition: 4th
Authors:
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pbrown223pbrown223
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4 years ago
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More questions for this book are available here
C
Explanation:  C) CF0 = -80,000 + 30,000 + .35(40,000 - 30,000) [tax write off old grill sold at loss] = -46,500
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