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Sigma Gama is consideringreplacing the existing machine witha more efficient machine. The newmachine costs $ 1 0 3 7 0 7 andrequires $ 6 8

Sigma Gama is consideringreplacing the existing machine witha more efficient machine. The newmachine costs $103707 andrequires $6820 in installation costs.The old machine was purchased 2years ago for an installed cost of$21688 and can be sold for $47638net of any removal costs today. Bothmachines are depreciated under theMACRS 5-year recovery schedule.The firm is in 40 percent marginaltax rate. Calculate the initialinvestment required for the newmachine

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