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 tax rate is 40%, the initial investment outlay for the new machine is _____.
A. $19,600
B. $30,000
C. $14,000
D. $16,000
E. $36,000
Answer: A
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Answer the following statement true (T) or false (F)