Answer:
Total purchase price= $323,650
Explanation:
Giving the following information:
Purchase price= $295,000
Installation= $3,900
Concrete for installation= $15,900
<u>The total cost of the machine includes the purchase price and all costs required to put it into operation. Taxes are part of the purchase cost.</u>
First, we need to calculate the net cash discount:
Net discount= 295,000 * 0.03= $8,850
<u>Now, the total purchase price:</u>
Total purchase price= (295,000 - 8,850) + 17,700 + 3,900 + 15,900
Total purchase price= $323,650