AG had made growth investments totaling $10 million a few years ago and are about to be fully depreciated, but now this investment is of no use in the case where the acquisition goes through, and therefore the acquisition would be followed with a sale of these assets. Their current value is 30% of their original value. Tax rate = 30%.

How would you calculate the investment sale/opportunity cost? Would it be 3-0.3*(3-0)=2.1 or 3-0.3*(3-10) = 5.1?