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 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 $20,000. The new machine would increase EBDT by $42,000 annually. Builtrites marginal tax rate is 34%.

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

A) $43,860 B) $41,360 C) $47,960 D) $45,240

What the RATFCFs associated with the purchase of this machine?

A) $26,230

B) $29,080

C) $31,720

D) $34,440

What is the TCF associated with the purchase of this machine?

A) $5,940

B) $7,920

C) $9,000

D) $12,000