ch 11 question 5

519,500, it was being depreciated under MACRS using a 5-yoar recovery period. (See table for the applicable depreciation peromerges) The existing machibe in erpeded to have a unathe ilio at at ka:15n removal or cleanup costs. The firm is subject to a 40% tax rate. Calculate the inilial imvostment ansociated with the propesed purchase of a ners grading ractine The intial investment will be 5 (Round to the nearest dollar) Data table (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes These percentages have been rounded to the nearest wnove percent to mmpury camunamen mme retaining reslism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-yaat convention