The Ally Gator Corporation of Meadville, PA, make of Ally's electronic components, is considering replacing one of its current hand-operated assembly machines with a new fully automated machine Existing situation: Original depreciable value of old machine - $50,000 Expected life - 10 years Age - 5 years old Expected salvage value in five years - $0 Current salvage value - $22,000 Marginal tax rate - 34 percent Proposed situation Fully automated machine resulting in annual savings of $40,000 Cost of machine - $86,000 Installation fee - $8,000 Expected life-five years, depreciated down to $0 Salvage value in 5 years - $30,000 What is the initial investment? $70,980 $73,020 $81 800 O $80,400