Ten years ago J-Bar Company purchased a lathe for $180,000. It was being depreciated on a straight-line basis over a 15-year period. The firm is considering selling the old lathe and purchasing a new one. The new lathe would cost $400,000. The firms marginal tax rate is 40 percent. Determine the net investment required to purchase the new lathe, if the old lathe is sold for $120,000.

$400,000

$304,000

$280,000

$328,000