Please explain to me the answers so that I can
understand the concept. Thank you!
You must evaluate a proposal to buy a new milling
machine. The purchase price of the milling machine, including
shipping and installation costs, is $126,000, and the equipment
will be fully depreciated at the time of purchase. The machine
would be sold after 3 years for $85,000. The machine would require
a $3,500 increase in net operating working capital (increased
inventory less increased accounts payable)....