Gains and Losses on Disposal. A company is considering the purchase of a new machine for \(\$ 200,000\) which would have a 5 -year life. The company would sell for \(\$ 50,000\) its old machine which cost \(\$ 180,000\) and has a book value of \(\$ 20,000\). Gains, losses, and profits have a tax rate of 40 percent. The new machine will require about \(\$ 30,000\) less in raw materials inventory to operate.

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What is the net cash outflow for the investment?