Superstrut Is Considering Replacing an Old Press That Cost $80,000

question 94

Multiple Choice

Superstrut is considering replacing an old press that cost $80,000 six years ago with a new one that would cost $245,000.The old press has a net book value of $15,000 and could be sold for $5,000.The increased production of the new press would require an investment in additional working capital of $6,000.The company's tax rate is 40%.What would be Superstrut's net investment now in the project?

• A) $240,000.
• B) $245,000.
• C) $246,000.
• D) $251,000.

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