Anderson Clayton Will Purchase a New Pellet Mill That Replace

Anderson Clayton will purchase a new pellet mill that replace an older, less efficient, mill.The new mill costs $360,000 and shipping costs are $10,000.Improving the steam lines to the new mill will cost an additional $22,000.The old mill has a book value of $25,000 and can be sold for $12,000.The installation of the new mill will cause inventories to increase by $8,000, accounts receivable will go up $20,000, and accounts payable will increase $10,000.If Anderson Clayton has a marginal tax rate of 40%, what is the NINV for the new mill?

A) $392,800
B) $412,800
C) $374,800
D) $398,000