Question: Your company bought a machine for $ 4 8 , 0 0 0 three years ago. The machine falls into the 7 - year MACRS

Your company bought a machine for $48,000 three years ago. The machine falls into the 7-year MACRS category and could be sold today for $28,800. A replacement machine could be bought and installed for $72,000. Your marginal tax rate is 34%.
What is the current book value of the original machine? Use table A1 in IRS publication 946 to look up the depreciation rates for each year.
What is the after-tax salvage value?
What is the initial investment required for the replacement project (enter as a positive number)?

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