The Rumpel Felt Company purchased a felt press last year at a cost of $15,000....
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The Rumpel Felt Company purchased a felt press last year at a cost of $15,000. The machine had an expected life of 3 years at the time of purchase. Its book value now is $12,000. The division manager reports that, for $12,000 (including installation), a new felt press can be bought. Both machines are 5-year property with depreciation rates of 20%, 32%, and 19.2% in the first three years. The new felt press will expand sales because the new fashion is for smoother felt. The old machine's current market value is $10,000. The new machine requires an increase in felt inventory of $3,000. Taxes are 40%. What is the initial cash flow (on the date of replacement) if Rumpel
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