1. Shunt Technology will spend $800,000 on a piece of equipment that will

manufacture fine wire for the electronics industries. The shipping and installation

charges will be $240,000 and net working capital will increase $48,000. The equipment will replace an existing machine that has a salvage value of $75,000

and a book value of $125,000. If Shunt has a current marginal tax rate

of 34 percent, what is the net investment?