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Spencers Majestic Foods is considering the replacement of some old equipment. The new equipment will cost $109,000 including delivery and installation. The old equipment to
Spencers Majestic Foods is considering the replacement of some old equipment. The new equipment will cost $109,000 including delivery and installation. The old equipment to be replaced has a book value of $76,300 and can be sold pre-tax for $74,300. If the firms effective tax rate is 25%, compute the net investment.
$32,700
$34,700
$33,200
$34,200
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