Initial cash flow: Basic calculation Cushing Corporation is considering the purchase of a new grading machine to replace the existing one. The existing machine was purchased 2 years ago at an installed cost of $20,900; it was being depreciated under MACRS using a

5-year recovery period. (See table MB for the applicable depreciation percentages.) The existing machine is expected to have a usable life of at least 5 more years. The new machine costs $35,800 and requires $5,400 in installation costs; it will be depreciated using a 5-year

recovery period under MACRS. The existing machine can currently be sold for $24,700 without incurring any removal or cleanup costs. The firm is subject to a 21% tax rate. Calculate the initial cash flow associated with the proposed purchase of a new grading machine.

The initial cash flow will be $. (Round to the nearest dollar)