Builtrite is considering purchasing a new machine that would cost $80,000 and the machine would be depreciated (straight

line) down to SO 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 3 years ago at a cost of $40,000 and it is being depreciated down to zero over its

5-year life. The current machine's salvage value now is $12,000. The new machine would increase EBDT by $54,000 annually.

Builtrite's marginal tax rate is 34%.

What the RATFCF's associated with the purchase of this machine?

O $39,640

O $38,360

O $36,360

O $35,640

Builtrite is considering purchasing a new machine that would cost $80,000 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 3 years ago at a cost of $40,000 and it is being depreciated down to zero over its 5 -year life. The current machine's salvage value now is $12,000. The new machine would increase EBDT by $54,000 annually. Builtrite's marginal tax rate is 34%. What the RATFCF's associated with the purchase of this machine? $39,640 $38,360 $36,360 $35.640