Question $5(1$ point$)$

Saved

The Fritz Electric Company replaced an old machine $8$ years ago with a new one.

They sold the new machine today for $$250,000.$ If Fritz had kept the old machine, it could have been sold for $$150,000$ today. The incremental undepreciated capital cost is $$300,000.$ The tax rate is $45\%.$ The depreciation rate for the machines is $30\%,$ and Fritz's cost of capital is $10\%.$ What is the present value of the incremental tax shields associated with selling the new machine?

$$50,625$

$-$$$33,750$

$$16,875$

$$67,500$