Question 3 Time Running Hide Attempt de Nov 22 at 11:59pm 48 Minutes 5 Seconds 2 pts Builtrite is considering purchasing a new machine that would cost $70,000 and the machine would be depreciated (straight line) down to $0 over its five year life. At the end of five years it is believed that the machine could be sold for $15,000. The current machine being used was purchased 3 years ago at a cost of $50,000 and it is being depreciated down to zero over its 5 year life. The current machine's salvage value now is $35,000. Also a higher level of inventory would be needed in the amount of $4000 for the new machine. The new machine would increase EBDT by $48,000 annually, Builtrite's marginal tax rate is 34" What is the initial Investment associated with the purchase of this machine? PM $3640 SPM $45100 $42.640 DE 5 PM $44100 Previous Next