What Is the Net Investment Required for a Pitting Machine

question 35

Multiple Choice

What is the net investment required for a pitting machine that will cost $35,000 including installation? The machine replaces a machine that cost $5,000 when purchased five years ago. The old machine has been fully depreciated but has a market value of $6,000. Assume the marginal tax rate is 40 percent.

• A) $29,000
• B) $31,400
• C) $32,600
• D) $34,505