A company is planning to replace old equipment with new, more efficient equipment. The company spent $100,000 on a market study and consulting a few months ago. It purchased the old equipment 15 years ago for $2,300,000. The old equipment is depreciated to $500,000 and has a market value of $400,000 today. The new equipment will cost $2,500,000. In order to make the equipment operable, the company must pay $120,000 for shipping and $150,000 for necessary training. With the anticipated growth due to the equipment replacement, the company has to invest $90,000 in working capital. The marginal tax rate is 32%. What is the initial outlay of this project to replace old equipment?

• $2,528,000
• $2428,000
• $2,928,000
• $2,328,000