Builtrite is considering purchasing a new machine that would cost $90,000 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 $35,000. The current machine being used was purchased 3 years ago at a cost of $70,000 and it is being depreciated down to zero over its 5-year life. The current machine's salvage value now is $20,000. 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 $56,000 annually. Builtrites marginal tax rate is 34%.

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

$25,100

$21,100

$23,100

$19,100