Initial investment-Basic calculation Casting Corporation is considering the purchase of a ww grating machine to roplace the existing one. The existing machine was purchased 3 youts go at an ituled cost of $19,200 it was being deprecated under MACRS sng as your recovery period. (See table 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 534 500 and requires 84,500 in installation costs, it will be deprecated using a 5 your recovery period under MACRS The existing machine concurrently be sold for $25 200 without incurring any romontor cleanup costs. The firm is subject to a 40% tax rate Calculate the initial investment associated with the proposed purchase of a new grading machine The initiativestment will be s (Round to the cores do Data Table 10 years kourueu vepreciation rercentages by recovery rear usmg MACKSTON First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 1 33% 20% 14% 2 45% 32% 25% 3 15% 19% 18% 4 7% 12% 12% 5 12% 9% 6 5% 9% 7 9% 8 9 10% 18% 14% 12% 9% 8% 7% 6% 6% 4%