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A $ 7 3 , 0 0 0 machine with a 1 0 - year class life was purchased 3 years ago. The machine will

A $73,000 machine with a 10-year class life was purchased 3 years ago. The machine will now be sold for $32,000 and replaced with a new machine costing $59,000, with a 5-year class life. The new machine will not increase sales, but will decrease operating costs by $16,000 per year. Simplified straight line depreciation is employed for both machines, and the marginal corporate tax rate is 34 percent. What is the initial outlay for the project? NOTE -- ALTHOUGH THE INITIAL OUTLAY IS NEGATIVE, PLEASE ENTER YOUR ANSWER AS A POSITIVE SIGN. IN OTHER WORDS, IF YOUR ANSWER IS -10,000, ENTER IT AS 10,000. DO NOT ENTER THE DOLLAR SIGN.
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