Tech Engineering Company Is Considering the Purchase of a New

Multiple Choice

Tech Engineering Company is considering the purchase of a new machine to replace an existing one. The current market value of the old machine is $14,000 and its book value is $5,000. The new machine's cost is $30,000. If the firm's marginal tax rate is 40%, the initial investment outlay for the new machine is _____. 

A) $19,600
B) $30,000
C) $33,600
D) $21,000
E) $44,000