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 purchasec years ago at an installed cost of $19,200; it was being depreciated under MACRS using a 5-year recovery period. (See table existing machine is expected to have a usable life of at least 5 more years. The new machine costs $34,300 and requires $4,700 in installation costs; it will be depreciated using a 5-year recovery period under MACRS. The existing machine can currently be sold for $24,000 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. Data table The initial cash flow will be $ (Round to Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Pronertv Classes *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual 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 purchasec years ago at an installed cost of $19,200; it was being depreciated under MACRS using a 5-year recovery period. (See table existing machine is expected to have a usable life of at least 5 more years. The new machine costs $34,300 and requires $4,700 in installation costs; it will be depreciated using a 5-year recovery period under MACRS. The existing machine can currently be sold for $24,000 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. Data table The initial cash flow will be $ (Round to Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Pronertv Classes *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual