Question: Please, Help Me, Thanks. Initial cash flow: Basic calculation Cushing Corporation is considering the purchase of a new grading machine to replace the existing one.


Please, Help Me, Thanks.
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 $20,000; 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 $34,100 and requires $4,800 in installation costs; it will be depreciated using a 5 -year recovery period under MACRS. The existing machine can currently be sold for $24,100 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.) Basic calculation Cushina Cornoration is considerina the nurchase of a new aradina machine to renlace the existina nne. The existing machine was purchased 2 years ago at Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property 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 unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention
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