3. A firm has decided to replace an existing asset with a newer Model. The     existing asset originally cost...

3. A firm has decided to replace an existing asset with a newer Model. The  

  existing asset originally cost $30,000 . The current book value of the existing 

  asset for tax purposes is $ 14,400. The existing asset can be sold for 

  $ 25,000. The new asset will cost $ 75,000. If the assumed tax rate is 40 %   

  on ordinary income and capital gains, the initial investment is ________