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 LOADING... for the applicable depreciation​ percentages.) The new machine costs $23,500 and requires $2,050 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 $12,500. b. EMC sells the old machine for $7,010. c. EMC sells the old machine for $2,900. d. EMC sells the old machine for $1,410.

Calculate the initial investment at various sale prices below.
a. EMC sells the old machine for $12,500 . ​(Round to the nearest​ dollar.)

(a)
Cost of new asset
$

Installation cost


Total installed cost
$


Proceeds from sale of old asset
$

Tax on sale of old asset
$

Total after-tax proceeds
$

Initial investment
$

b. EMC sells the old machine for $7,010 . ​(Round to the nearest​ dollar.)

(b)
Cost of new asset
$

Installation cost


Total installed cost
$


Proceeds from sale of old asset
$

Tax on sale of old asset
$

Total after-tax proceeds
$

Initial investment
$

c. EMC sells the old machine for $2,900 . ​(Round to the nearest​ dollar.)

(c)
Cost of new asset
$

Installation cost


Total installed cost
$


Proceeds from sale of old asset
$

Tax on sale of old asset
$

Total after-tax proceeds
$

Initial investment
$






d. EMC sells the old machine for $1,410 . ​(Round to the nearest​ dollar.)

(d)
Cost of new asset
$

Installation cost


Total installed cost
$


Proceeds from sale of old asset
$

Tax on sale of old asset
$

Total after-tax proceeds
$

Initial investment
$