1. Ricardo's Ristorante Italiano, Inc. is considering replacing an old pasta machine with a new one. Two months ago, Ricardo's top chef completed a training seminar on the new machine's operation and efficiency. The $1,000 cost for this training session has already been paid. If the new machine is purchased, it would require $5,000 in installation and modification costs to make it suitable for operation in the factory. The old machine originally cost $85,000 four years ago and is being depreciated by $17,000 per year. The new machine will cost $120,000 before installation and modification. It will be depreciated over a five-year period. The old machine can be sold today for $20,000. The marginal tax rate for the firm is 30%. What is the initial outlay for the new machine of the project is accepted