Question: Builtrite is considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over its five

Builtrite is considering purchasing a new machine that would cost $60,000 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 $10,000. The new machine would increase EBDT by $58,000 annually.Builtrite's marginal tax rate is 34%.

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

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