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Calculate the initial investment of the following replacement project. The cost of the new asset is \$200,000, and installation costs are \$15,000.

Calculate the initial investment of the following replacement project. The cost of the new asset is \$200,000, and installation costs are \$15,000. The initial cost of the existing asset is \$80,000 and has a book value of \$16,000. The existing asset can be sold for \$30,000. The tax rate is 40%.

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