Builtrite is considering purchasing a new machine that would cost $55,000 and the machine would be depreciated (straight line) down to $0 over its five-year life. At the end of five years, it is believed that the machine could be sold for $15,000. The current machine being used was purchased 2 years ago at a cost of $35,000 and it is being depreciated down to zero over it 5-year life. The current machine's salvage value now is $30,000. Also, a higher level of inventory would be needed in the amount of $2000 for the new machine. The new machine would increase EBDT by $48,000 annually. Builtrite's marginal tax rate is 34%. What is the Initial Investment associated with the purchase of this machine?

Builtrite is considering purchasing a new machine that would cost 555,000 and the machine would be depceciuted (etraght line) down to $0 over its five-year life. At the end of five years, it is believed that the mactire couls be sold tor $15000. Tha current machine being used was purchased 2 years ago at a cost of $35,000 and it is being depreciated down te aeso oner 5-year life. The current machine's salvage value now is $30,000. Alsa, a higher level of imventory woukd be needed in the rate 1834%. What is the Initial Investment associated with the purchase of this machine