A firm has decided to replace an existing asset with a newer Model. The existing asset originally cost $30,000 . The current book value of the existing asset for tax purposes is $ 14,400. The existing asset can be sold for $ 25,000. The new asset will cost $ 75,000. If the assumed tax rate is 40 % on ordinary income and capital gains, the initial investment is ________
A. $ 42,000
B. $ 52,440
C. $ 54,240
D. $ 50,000