P11-9 (similar to) Question Help Initial investment at various sale prices Edwards Manufacturing Company (EMC) is considering replacing one machine with another. The old machine was purchased 3 years ago for an installed cost of $10,000. The firm is depreciating the machine under MACRS, using a 5-year recovery period. (See table !: for the applicable depreciation percentages. The new machine costs $24,100 and requires $2,070 in installation costs. The firm is subject to a 40% tax rate. In each of the following cases, calculate the initial investment for the replacement. a. EMC sells the old machine for $12.200 b. EMC sells the old machine for $6.940. c. EMC sells the old machine for $2,900. Data Table d. EMC sells the old machine for $1,530. Calculate the initial investment at various sale prices beld . EMC sells the old machine for $12,200. (Round to the (a) . SL Cost of new asset Installation cost Total installed cost 24,100 2070 26170 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years '5 years 7 years 10 years 33% 20% 14% 10% 25% 15% 19% 18% 12% 12% 12% 12% 9% 9% S 45% 32% 18% 14% 7% 12200 OWN 9% 8% Proceeds from sale of old assets Tax on sale of old asset Total after-tax proceeds 79% 6% 6% Initial investment Totals 100% 100% 100% 100% lit l atione while