The following is a description of an investment project:

Equipment will cost $$60,000$

Installation and delivery costs for the equipment are $$5,000$

The equipment will be depreciated according to $5-$year MACRS

This new equipment will be replacing old equipment that has been completely depreciated and has a current salvage value of $$8,000.$

The marginal tax rate $=25\%$

What is the initial investment?

$$61,000$

$$59,000$

$$67,000$

$$64,500$