lol lol Question 14 (10 points) MACRS RATE Recovery year 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45 32 25 18 3 15 19 18 14 4 7 12 12 12 5 12 9 9 6 5 9 8 7 7 8 4 6 9 6 10 6 11 4 A machine currently in use was originally purchased 2 years ago for $40.000. The machine is being depreciated under MACRS using a 5-year recovery period. The current machine can be sold at $42.000. A new machine, using a 3-year MACRS recovery period. can be purchased at a price of $140.000 and requires $10,000 to install If the new machine is acquired the firm expects a $35.000 increase in current assets and a $15.000 increase in current liabilities. The firm is subject to a 40% tax rate. Calculate the initial investment. alalaloo $137.120 $154. 200 $155,500 $154.140