Builtriteis considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over its four year life.At the end of four years it is believed that the machine could be sold for $12,000.The machine would increase EBDT by $42,000 annually.Builtrite'smarginal tax rate is 34%.

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

$30,452

$32,820

$31,800

$29,940

Builtriteis considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over its four year life.At the end of four years it is believed that the machine could be sold for $12,000.The machine would increase EBDT by $42,000 annually.Builtrite'smarginal tax rate is 34%.

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

$7,920

$0

$9,900

$4,080