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 $22,000. The current machine being used was purchased 3 years ago at a cost of $40,000 and it is being depreciated down to zero over its 5-year life. The current machine's salvage value now is $12,000. The new machine would increase EBDT by $56,000 annually and inventory by $5000 annually. Builtrite's marginal tax rate is 34%. What is the TCF associated with the purchase of this new machine?

$22,000 $19,520 $14,520 $5,000