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The Ellsworth Company is contemplating the replacement of their old printing machine with a new model costing $ 6 0 , 0 0 0 .

The Ellsworth Company is contemplating the replacement of their old printing machine with a new model costing $60,000. The old machine; which originally cost $40,000, has 6 years of expected life remaining and a current book value of $30,000, versus a current market value of $24,000. Ellsworth's corporate tax rate is 40%. If Ellsworth sells the old machine at market value, what is the initial outlay (after-tax) for the new printing machine? (Assume no taxes on the disposition of assets.)
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