What is the net first cost of purchasing the new gear hobber

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Reference no: EM13929948

A company owns a 6-year old gear hobber that has a book value of $60,000. The present market value of the hobber is $80,000. A new gear hob- ber can be purchased for $450,000. Using an insider’s point of view, what is the net first cost of purchasing the new gear hobber?

1. $370,000

2. $450,000

3. $310,000

4. $390,000

Reference no: EM13929948

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