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Anderson Clayton will purchase a new pellet mill that replaces an older, less efficient, mill. The new mill costs $300,000 and shipping costs are $10,000.

Anderson Clayton will purchase a new pellet mill that replaces an older, less efficient, mill. The new mill costs $300,000 and shipping costs are $10,000. Improving the steam lines to the new mill will cost an additional $20,000. The old mill has a book value of $5,000 and can be sold for $10,000. The installation of the new mill will cause inventories to increase by $5,000, accounts receivable will go up $10,000, and accounts payable will increase $5,000. If Anderson Clayton has a marginal tax rate of 40%, what is the NINV for the new mill?

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