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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

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 $50,000 and it is being depreciated down to zero over its 5-year life. The current machine's salvage value now is $35,000. The new machine would increase EBDT by $54,000 annually. Builtrites marginal tax rate is 34%.

What the RATFCFs associated with the purchase of this machine?

Group of answer choices

$36,360

$37,340

$39,720

$43,660

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