A company is looking to purchase and replace a fixed asset for $220,000. It will sell the asset that will be replaced for $41,000 but will incur a $10,000 gain upon that sale. It must also commit $30,000 of

workingcapital

to the investment. The firm's tax rate is 30%. What is the amount of the relevant initial investment?

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Part 1

A.

$182,000

B.

$220,000

C.

$212,000

D.

$179,000