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Buitrite is considering purchasing a new machine that would cost 690.000 and the machine would be deprecished (atrient line) down to so over its five-

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Buitrite is considering purchasing a new machine that would cost 690.000 and the machine would be deprecished (atrient line) down to so over its five- year life. As the end of five years, it is believed that the machine could be sold far 515,000 . The current machine being used was purchased 3 years aoo at a cost of $70,000 and is is being depereciated donn 10 zero over has 5 year life. The current machine's salvage value now is $20,000. Also, a highee ievel of imentory would be needed in the amount of $2000 for the new machine. The new machine would increase EBoT by $48,000 annually. Duitsiters inarginat tax. rate is 34 \& What is the Inatial inwestment astroclated with the purchasen of this machine? setrato 374,720

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