Initial investment-Basic calculation Cushing Corporation is considering the purchase of a new grading machine to replace the existing one. Tho existing machine was purchased 2 years ago at an instailed cost of 520,000 , it was being depreciated under MACRS using a 5 -year recovery petiod (See table for the applicable depreoation percentages ) The exiating machine is expected to have a usable Ife of at least 5 more years. The new machine costs $34,900 and requires $5,500 in installation costs; it will be depreciated using a 5 -year recovery period undor MacRS. The eriating machine can currently be sold for $24,900 without incurring any removal or dleanup costs. The firm is subjoct to a 40% t tax rath. Calculate the initial investment associated with the proposed purchase of a new grading machine. Data table The initial invesiment will be s (Round to the nearest dollaf) (Cick on the icon located on the top-nght comer of the data table below in order to copy ts contents into a spreadsheet) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes retaining realism. To calculate the actual depreoiation for tax purposes, be sure to apply the achual untounded percentages of directly apply double-doclining balance (200%) depreclaton using the half-year comvention