What would my initial investment

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My corporation has decided to replace an existing case packer (machine) with a newer one. Two years ago, the current case packer cost $70,000 (cheap!) & was being depreciated under MACRS using a 5 year recovery period. The current case packer can now be sold for $30,000. The new case packer will cost me $80,000 & would also be depreciated under a 5 year recovery period. If my assumed tax rate is 40% on all ordinary income & capital gains, what would my initial investment be on this replacement project?

 

 

 

Reference no: EM132200007

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