Winneconne Company is considering replacing a machine with a book value of $400,000 , a remaining useful life of 5 years , and annual straight-line depreciation of $80,000 . The existing machine has a...

Winneconne Company is considering replacing a machine with a book value of
$400,000, a remaining useful life of
5 years, and annual straight-line depreciation of
$80,000. The existing machine has a current market value of
$400,000. The replacement machine would cost
$550,000, have a
5-year life, and save
$75,000
per year in cash operating costs. If the replacement machine would be depreciated using the straight-line method and the tax rate is
30%, what would be the net investment required to replace the existing machine?