A company is planning to replace old equipment with new, more efficient equipment. The company spent $120,000 on a market study and consulting a few months ago. It purchased the old equipment 20 years ago for $1,800,000. The old equipment is depreciated to $100,000 and has a market value of $300,000 today. The new equipment will cost $2,200,000. In order to make the equipment operable, the company must pay $60,000 for installation and $90,000 for necessary training. With the anticipated growth due to the equipment replacement, the company has to invest $110,000 in working capital. The marginal tax rate is 34%. What is the initial outlay of this project to replace old equipment?

• $2,228,000
• $2,348,000
• $2,328,000
• $2,428,000