finc330

Calculate the initial investment of the following replacement project. The cost of the new asset is $200,000, and installation costs are $15,000.
The initial cost of the existing asset is $80,000 and has a book value of $16,000. The existing asset can be sold for $30,000. The
tax rate is 40%.<?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />