Initial cash flow: Basie calculation Cushing Corporation is considering the purchase of a new grading machine to replace the existing on the conting machine purchased 4 years ago at an installed cost of $19.900; it was being depreciated under MACRS using a 5-year recovery period (See table for the applicatie 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 14.000 installation costs, it will be deprecated using a 5-year recovery period under MACRS The existing machine can currently be sold for $24.700 without incuting w removal or cleanup costs. The firm is subject to a 21% tax rates Calculate the initial cash flow associated with the proposed purchase of a new geading machine The initial cash flow will be $ (Round to the nearest dollar) Data table (Click on the icon here 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 Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 10 years 33% 20% 14% 10% 45% 32% 25% 18% 3 15% 19% 18% 14% 4 78 12% 12% 12% 5 12% 9% 9% 9% 8% 7 9% 7% 8 8% 9 6% 10 5% 11 4% Totals 100% 100% 100% 100% *These percentages have been founded to the nearest whole percent to simplity calculations while retaining realism. 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 year convention Print Done