ABC Ltd is considering the replacement of its old machine with a new model costing $60,000. The old machine, which originally cost $50,000, has 5 years of expected life remaining, and a current book value of $30,000. ABC's corporate tax rate is 30%. If ABC sells the old machine now for $24,775, what is the initial after-tax investment for the new machine?
Question 15Select one:
a.
-$31,442
b.
-$33,658
c.
-$35,593
d.
-$33,836
e.
-$36,171