A small manufacturer is condiering an equipment replacement project. The new equipment would have an installed cost of $125,000 and would replace existing equipment that was purchased 3 years ago at...


A small manufacturer is condiering an equipment replacement project. The new equipment would have an installed cost of $125,000 and would replace existing equipment that was purchased 3 years ago at an installed cost of $80,000. If the company moves forward with the replacement, it could sell the old equipment for $25,000. Purchasing the new equipment would result in the company's scurrent assets increasing by $12,000 and current liabilities increasing by $9,000. The company uses the 5 year MACRS table for depreciation and taxed at 21%


What is the tax on the sale of the old equipment?


what are teh after tax proceeds from the sale of the old equipment?


what is the change in Net Working Capital?



Jun 11, 2022
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