Cost of new asset Add installation cost (if any) Add transportation cost (if any) Add removal

cost of old asset (only if borne by the company) Less selling price of old asset (if new asset replaces old asset) + / - Tax on sale of old asset Less Amount of investment tax credit (AITC

Net Cash Outflow or Net Cap. Spending

270000 5000 7000 0 -75000 12500 -37125

OC BV SP OI

70000 50000 40000 -10000

182375