What Is the Net Investment for an Extruder That Costs

Multiple Choice

What is the net investment for an extruder that costs $42,000, if shipping costs are $1,500 and installation is $4,800? Assume this efficient machine is replacing an older extruder with a book and market value of zero. The replacement investment will reduce operating costs by $6,600 a year.

A) $48,300
B) $54,900
C) $43,500
D) $51,000