Builtrite is considering purchasing a new machine that would cost $70,000 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 $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.  Also, a higher level of inventory would be needed in the amount of $4000 for the new machine.  The new machine would increase EBDT by $48,000 annually.  Builtrite's marginal tax rate is 34%.

 

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