Problem:
Riordan Manufacturing company is considering replacing machine. the machine was purchased 6 years ago for $80,000 and has been depreciated straight line over an 8-year life.the old machine will be sold for a market value of $14,500. The new machine costs $55,000.
Required:
Question: Assuming a tax rate of 28%, calculate the initial outlay.
A) $38,960
B) $42,040
C) $45,460
D) $51,760
Note: Show step by step solution and I also want complete calulation.