Rupp Pumps is purchasing an extruder for $80,000. The extruder will require an expenditure of $12,000 for installation and $4,000 for training new operators. The new equipment will require an increase of $5,000 in inventory, $4,000 in accounts receivable, and $3,000 in accounts payable. What is the net investment for this project?

A) $108,000
B) $102,000
C) $98,000
D) $99,000

Net Investment

The total amount spent by a company or economy on capital assets, minus depreciation. This indicates how much is being spent on new or replacement assets.

Accounts Receivable

Funds that customers owe to a business for products or services that have been provided but not yet compensated for.

Installation

The process of setting up and configuring hardware or software systems to make them ready for operation.