Initial cash flow: Basic calculation Cushing Corporation is considering the purchase of a new grading machine to replace the existing one. The existing machine was purchased 2 years ago at an installed cost of $20,900, it was being depreciated under MAcRS using a 5 -year recovery period, (See table [Fit) for the applicable depreciation. percentages.) The existing machine is expected to have a usable life of at least 5 more years. The new machine costs $34,000 and requires $4,800 in insta ation costs; it will be depreciated using a 5 -year recovery pedod under MACRS. The existing machine can currently be sold for $24,400 without incuiring any removal or cleanup costs. The firm is subject to a 21% tax rate. Calculate the initial cash flow associated with the proposed purchase of a new grading machine. The initial cash fow will bes (Round to the nearest doliar) Data table (Click on the icon here 0 . in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Proberty Classes. "These percentages have been rounded to the nearest whow percent to simpuiry caccunanons wnue retaining realism. To calculate the actual depreciation for tax purposes be sure so apply the actual unrounded percentages or difectly apply double-decining balance (200sh) depreciation using the haif-year convention