ch. 12-Total investment amount required. ABC ABC already spent $85,000 on a feasibility study for a machine that will produce a new product. The machine will cost $2,575,000. Required modifications will cost $375,000. ABC will need to invest $75,000 for additional inventory. The machine has IRS approved useful life of 7 years; it is presumed to have no salvage value. It will only be operated for 3 years, after which it will be sold for $600,000. What is the total investment amount required for the machine? Answer options: A. 2,350,000 B. 2,575,000 C. 3,025,000 D. 2,950,000
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