Question $5,$ P$11-12($similar to$)$

HW Score: $41\mathrm{.}8\%,3\mathrm{.}76$ of $9$ points

$()$ Points: $0$ of $1$

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 $$19,000$; it was being depreciated under MACRS using a $5-$year recovery period. $($See table $$ 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 $$35,900$ and requires $$5,300$ in installation costs; it will be depreciated using a $5-$year recovery period under MACRS. The existing machine can currently be sold for $$25,900$ 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.

$($Click on the icon located on the top$-$right corner of the data table below in order to copy its contents into a spreadsheet.$)$

Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes

liew an example

$\backslash$table$[[,$Percentage by recovery year$*],[$Recovery year,$3$ years,$5$ years,$7$ years,$10$ years$],[1,33\%,20\%,14\%,10\%$