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( CB CFs ) You are analyzing the purchase of new equipment. Since you are not an expert on this type of equipment, you hire

(CB CFs) You are analyzing the purchase of new equipment. Since you are not an expert on this type of equipment, you hire a consulting firm to make recommendations. The consultant charged you $3,445 and recommended the purchase of the latest model from HiFlex Corp. of America. The equipment costs $80,395, and it will cost another $9,205 to modify it for special use by your firm. The equipment will be depreciated on a straight-line basis over 6 years with no salvage value. You expect the equipment will be sold after 3 years for $27,590. Use of the equipment will require an increase in your company's net working capital of $4,488, but this $4,488 will be recovered at the end of year 3. The use of the equipment will have no effect on revenues, but it is expected to save the firm $48,114 per year in before-tax operating costs. Your company's marginal tax rate is 33%. What is the initial outlay required to fund this project, to the nearest dollar?

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