P11-12 (similar to) E Question Help Initial investment-Basic calculation Cushing Corporation is considering the purchase of a new grading machine to replace the existing one. The existing machine was purchased 4 years ago at an installed cost of $20,600, it was being depreciated under MACRS using a 5-year recovery period. (See table 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 $34,200 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 $24,900 without incurring any removal or cleanup costs. The firm is subject to a 40% tax rate. Calculate the initial investment associated with the proposed purchase of a new grading machine. The initial investment will be s(Round to the nearest dollar) or Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Answer est Data Table for Percentage by recovery year* Recovery year 3 years 33% 5years7years 10 years anup 15% 4% swer Print Done win