A company installed a piece of equipment with a 5-year life and no salvage value. The new equipment costs $500,000 and will generate $150,000 in savings each year. Old equipment with a book value of $50,000 and a remaining life of 2 years was sold for $20,000. No changes in working capital are anticipated. The effective income tax rate is 40%. The total initial investment for the new equipment is a. $450,000. b. $468,000. c. $500,000. d. $550,000.