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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

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