Due to expected increases in sales, the Target Copy Company is contemplating purchasing a new printing machine costing $ 599 .
Due to expected increases in sales, the Target Copy Company is contemplating purchasing a new printing machine costing $ 599 . To accomodate the new sales, the company will need to purchase additional inventory of $ 28 , part of which will be financed by an increase in accounts payable of $ 13 . Target’s corporate tax rate is 34 percent. What is the initial after-tax outlay for the new printing machine? Since this is a cash outlay, be sure to use the – sign when writing your answer. Do not use the $ symbol.
Leave a Reply
Want to join the discussion?Feel free to contribute!