A company is considering replacing an old machine, which has a market value of $95,000 and a tax basis of $145,000. The new machine would cost $210,000 and would cause a $25,000 reduction in working capital because of the need for fewer spare parts. If the company’s tax rate is 39%, what would be the initial cash outlay for this replacement project?

Cash flows during the first year of operations for the harman-kardon consulting company were as follows: cash collected from customers, $360,000; cash paid for rent, $44,000; cash paid to employees for services rendered during the year, $124,000; cash paid for utilities, $54,000.in addition, you determine that customers owed the company $64,000 at the end of the year and no bad debts were anticipated. also, the company owed the gas and electric company $2,400 at year-end, and the rent payment was for a two-year period.calculate accrual net income for the year.