4P QUESTION 16 Use the following information for the next 4 questions. Sedgewyek, the director of capital budgeting for Quality Printing Inc. is analyzing the replacement of a black and white printer. The old black and white printer was purchased 1 year ago for $16.000; it falls into the MACRS 5-year class; and it has 3 years of remaining life with a $4,500 salvage value 3 years from now. The current market value of the old black and white printer is $12,000. The new color printer has a price of $22.000 plus an additional costs of $1,400 for installation and 5600 for shipping. The new color printer falls into the MACRS 5.year class, has a 3-year economic life, and a 57.000 salvage value. The new color printer requires a S1200 increase in inventory, and accounts payable is expected to increase by $700. The new color printer is expected to increase revenue by $8,000 per year and decrease costs by $3,000 per year. The firm has an 11 percent cost of capital nod a marginal tax rate of 35 percent . The MACRS S-year class uses the following percentages: 20%, 32%, 19%, 12%, 11%, 6% (in that order). (Round all CFs to nearest dollar) What is the net cash investment at Year 0? a outflow of $11.940 b. outflow of $12,220 o outflow of $11.720 d. outflow of S10,220 e outflow of $11.100