Cushing Limited is considering the purchase of a new grading machine to replace the existing one. The existing machine was purchased three years ago at an installed cost of $20,000. It was being depreciated using the prime cost method with an effective life of five years. The existing machine is expected to have a usable life of at least five more years. The new machine costs $35,000 and requires $5,000 in installation costs. It will be depreciated using the prime cost method over five years. The existing machine can currently be sold for $25,000 without incurring any removal or clean-up costs. The firm pays 40% taxes on both ordinary income and capital gains. Calculate the initial investment associated with the proposed purchase of a new grading machine