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Builfite is considering purchasing a new machine that would cost ( $ 75,000 ) and the machine would be depreciated (suraight line) down to (

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Builfite is considering purchasing a new machine that would cost \\( \\$ 75,000 \\) and the machine would be depreciated (suraight line) down to \\( \\$ 0 \\) over its frve-year life. At the end of five years, it is believed that the machine could be sold for \\( \\$ 75,000 \\). The currenf machine being used was purchased 2 years ago at a cost of \\( \\$ 50,000 \\) and it is being depteciated down to zero over its 5-year life. The current machine could be sold now for \\( \\$ 20,000 \\). The new machine would increase EBDT by \\( \\$ 42,000 \\) annually and would require an additional \\( \\$ 4000 \\) in inventory. Builtrite's marginal tax rate is \34. What is the Initial investment associated with the purchase of this machine? \\( \\$ 62,400 \\) \\( \\$ 56,600 \\) \\( \\$ 57,400 \\) \\( \\$ 59,000 \\)

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