12-42 on page 486 (CPA Adapted) Gravina Company is planning to spend $6,000 for a machine that it will depreciate on a straightline basis over 10 years with no salvage value. The machine will generate additional cash revenues of $1,200 a year. Gravina will incur no additional costs except for depreciation. Its income tax rate is 35%. Required 3. What is the maximum amount that Gravina Company should invest if it desires to earn an internal rate of return (IRR) of 15%? Hint: This is another part of a problem we completed in class. This problem is asking you to work backward to find the amount of the investment. Ignore the part of the first sentence that indicates the company is planning to spend $6,000.