Sigma Gama is considering

replacing the existing machine with

a more efficient machine. The new

machine costs $$120261$ and

requires $$6974$ in installation costs

The old machine was purchased $2$

years ago for an installed cost of

$$23015$ and can be sold for $$45774$

net of any removal costs today. Both

machines are depreciated under the

MACRS $5-$year recovery schedule

The firm is in $40$ percent marginal

tax rate. Calculate the initial

investment required for the new

machine,