Marston Manufacturing Company is considering a project that requires an investment in new equipment of $3,400,000, with an addit

Question

3 years ago

15

Marston Manufacturing Company is considering a project that requires an investment in new equipment of $3,400,000, with an addit

ional $170,000 in shipping and installation costs. Marston estimates that its accounts receivable and inventories need to increase by $680,000 to support the new project, some of which is financed by a $272,000 increase in spontaneous liabilities (accounts payable and accruals).
The total cost of Alexander's new equipment is _____________ an consist of the price of new equipment plus the ___________

Business

1 answer:

Travka [436] · Answer 1 · 2022-04-11T05:42:57+03:00

Answer: $3,570,000

• assets installation, shipping and installation costs.

Explanation:

The The total cost of Alexander's new equipment will be calculated thus:

= $3,400,000 + $170,000

= $3,570,000

The coat of the new equipment consist of (assets installation, shipping and installation costs).