The Pink Pussycat Lounge is considering replacing its lighting-11019

.The Pink Pussycat Lounge is considering replacing its lighting system. The new lights will cost $16,000 and can be installed for $2,500. The old light fixtures were depreciated to zero but can be sold to Secondhand Sam for $1,000. If the Pink Pussycat has a 35 percent tax rate, the initial cash outflow for the new lighting system is

This multiple choice question (MCQ) is related to the book/course vu fin622 Corporate Finance. It can also be found in vu fin622 Final Term - Quiz No.14.