Builtrite is considering purchasing a new machine that would cost $75,000 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 $35,000 and is being depreciated down to zero over its 5 year life. Also, a higher level of inventory would be needed in the amount of $3000 for the new machine. The machine would increase EBDT by $56,000 annually. Builtrites marginal tax rate is 34%. What is the TCF associated with the purchase of this machine?

$9,900

$12,900

$14,300

$17,300