Problem: What is the net investment for an extruder that costs $42,000, if shipping costs are $1,500 and installation is $4,800? Assume this efficient machine is replacing an older extruder with a book and market value of zero. The replacement investment will reduce operating costs by $6,600 a year.
The following choice are:
a. $48,300
b. $54,900
c. $43,500
d. None of the above