My corporation has decided to replace an existing case packer (machine) with a newer one. Two years ago, the current case packer cost $70,000 (cheap!) & was being depreciated under MACRS using a 5 year recovery period. The current case packer can now be sold for $30,000. The new case packer will cost me $80,000 & would also be depreciated under a 5 year recovery period. If my assumed tax rate is 40% on all ordinary income & capital gains, what would my initial investment be on this replacement project?

a) $48,560

b) $44,360

c) $49,240

d) $27,600