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Sigma Gama is considering replacing the existing machine with a more efficient machine. The new machine costs $ 1 1 5 6 6 3 and

Sigma Gama is considering replacing the existing machine with a more efficient machine. The new machine costs $115663 and requires $9937 in installation costs. The old machine was purchased 2 years ago for an installed cost of $34857 and can be sold for $45508 net of any removal costs today. Both machines are depreciated under the MACRS 5-year recovery schedule. The firm is in 40 percent marginal tax rate. Calculate the initial investment required for the new machine.Note: use one decimal place. Insert numbers only. Refer to the MACRS table in the slides.

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