Builtrite is considering purchasing a new machine that would cost $$60,000$ and the machine would be depreciated $($straight line$)$ down to $$0$ over its five year life. At the end of five years it is believed that the machine could be sold for $$15,000.$ The current machine being used was purchased $2$ years ago at a cost of $$50,000$ and it is being depreciated down to zero over its $5$ year life. The current machine's salvage value now is $$20,000.$ The new machine would increase EBDT by $$42,000$ annually and would require an additional $$3000$ in inventory. Builtrite's marginal tax rate is $34\%.$

What is the Initial Investment associated with the purchase of this machine?

$$ $$38,640$

$$ $$36,600$

$$34,600$

$$ $$39,600$