nitial investment at various sale prices Edwards Manufacturing Company$($EMC$)$ is considering replacing one machine with another. The old machine was purchased $3$ years ago for an installed cost of

$$10,000.$ The firm is depreciating the machine under$$ MACRS, using a$5-$year recovery period.$($See table

for the applicable depreciation$$ percentages.$)$ The new machine costs $$24,500$ and requires

$$1,900$ in installation costs. The firm is subject to a $40\%$ tax rate. In each of the following$$ cases, calculate the initial investment for the replacement. a$.$ EMC sells the old machine for $$11,700.$

b$.$ EMC sells the old machine for $$6,960.$c$.$ EMC sells the old machine for $$2,900.$