Problem:
Due to expected increases in sales, the Target Copy Company is contemplating purchasing a new printing machine costing $ 364 . To accomodate the new sales, the company will need to purchase additional inventory of $ 30 , part of which will be financed by an increase in accounts payable of $ 18 . Target's corporate tax rate is 41 percent.
Required:
Question: What is the initial after-tax outlay for the new printing machine?
Note: Provide support for your underlying principle.