The Target Copy Company is contemplating the replacement of its old printing machine with a new model costing $ 53 ,000. The old machine, which originally cost $ 33 ,000, has 6 years of expected life remaining and a current book value of $ 15 ,000 versus a current market value of $ 27 ,000. Target’s corporate tax rate is 29 percent. If Target sells the old machine at market value, what is the initial after-tax outlay for the new printing machine?
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