Compute the net investment for replacement project

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Reference no: EM131609717

Bob’s Outdoor Adventures is considering replacing his fleet of Hummers. A new fleet of specially configured Hummers will cost $800,000, including all the shipping, dealer prep, documentation, and title costs. The old fleet can be sold for $200,000 and the remaining book value on the old fleet is $150,000. Compute the net investment for this replacement project. Use 40 percent for the effective tax rate.

Reference no: EM131609717

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