An old machine is being replaced by a newer model and will be sold for more than its book value at the time of the replacement. Consider the following list of three items:

I. selling price of the new machine

II. tax effect of sale of old machine

III. selling price of the old machine.

Which of these represent initial cash outflows?

	a.	Both II and III
	b.	Both I and II
	c.	II only
	d.	I only
	e.	III only