Edwards manufacturing company is considering replacing one machine with another. The old machine was purchased 3 years ago for an installed cost of $10,000. The firm is depreciating the machine under MARCS, using a 5-year recover periuod. The new machine costs $24,000 and requires 2,000 in installation costs. The firm is subject to a 40% tax rate. In each of the following cases, calculate the initial investment for the replacement. Please show the work.

a	EMC sells the old machine for $11,000
b	EMC sells the old machine for $7,000
c	EMC sells the old machine for $2,900
d	EMC sells the old machine for $1,500