Sorry for the late response, been busy with mid-semester exams.
Heres the official answer, hope it helps.
Book value of existing X-ray machine
= $7200
Book loss on sale of existing X-ray machine
= 7,200 - 5000 = $2,200
Tax shield from book loss on sale of existing X-ray machine
= 0.3(2,200) = $660
Hence:
After-tax proceeds from sale of old asset
= 5,000 + 660 = $5,660
Initial Investment
= 65,000 – 5,660 + 2,000 = $61,340
