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-X Initial investment at various sale prices Edward Manufacturing Company EMC) is considering replacing one machine with another. The old machine was purchased years ago

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-X Initial investment at various sale prices Edward Manufacturing Company EMC) is considering replacing one machine with another. The old machine was purchased years ago for as installed out of $10.000 The fem is depreciating the machine under MACRS, using a 5 year recovery period. (See table for the applicable depreciation percentages. The new machine costs $24.400 and requires 35.910 in Installation costs. The firm is woject to a 40% tax rate weach of the following cases calculate the will investment for the replacement a. EMC sells the old made for $12,000 b. EMC sells the old machine for 57 000 c. EMC sells the old machine for $2.900 d. EMC sells the old machine for $1.490 Datatile Calculate the initial investment at wous sale prices below a. EMC ses the old machine for 512.000 (Round to the rest Click on the icon tocated on the top light comer of the datable below in order to copy its contento spread (A) Rounded Depreciation Peronstages by Recovery Year Uning MACRS for Cast of new asal First Four Property Classes Percentage by recovery year Installation COM Recovery year 3 years 5 years 7 years 10 years Totalled cost 38 20 145 10% 2 155 32% 20 10% 3 155 19% 16% 448 $ Proceeds from sale of oldal 4 125 12% 12 Taxon sale of old asset 5 5 125 9% 5 5 99 Totalter des proces 5 9% In Investment 9 10 11 Totals SOOS 100% 100% 100% These percentages have been founded to the nearest who simply calculations wil igram. To calote twactual depreciation for tax purposes, be sure to apply the actual urrounded percentages udecly apply double de dining balance (2005) depreciation using the ball your con 3 De Tristanden Check

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