Styles Answer: B 7) A company is looking to purchase and replace a fixed asset for $255,000. It will sell the asset that will be replaced for $46,000 but will incur a $20,000 gain upon that sale. It must also commit $30,000 of working-capital to the investment. The firm's tax rate is 35%. What is the amount of the relevant initial investment? A) $245,000 B) $264,000 C) $246,000 D) $206,000