Purchase a new commercial oven

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RockRidge is going to purchase a new commercial oven. It will cost $25,000 installed. The new oven replaces an oven that cost $2,000 when purchased 5 years ago. The old oven has been fully depreciated but has a market value of $3,000. Assume the marginal tax rate if 40%. What is the net investment?

Reference no: EM13929479

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