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 machine would increase EBDT by $42,000 annually. Builtrites marginal tax rate is 34%.

What is the TCF associated with the purchase of this machine?

A.		$15,000
B.		$10,000
C.		$6,600
D.		$9,900

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