Danged Corporation, a manufacturer of mobile phone cases, is considering replacing an existing piece of equipment with a more sophisticated machine. The following information is given.

Facts
Existing Machine		Proposed Machine
Cost = $200,000		Cost = $250,000
Purchased 2 years ago		Installation = $25,000
Depreciation using MACRS over a 5-year recover schedule		Depreciation using MACRS over a 5-year recover schedule will be used
Current market value = $210,000
Five year usable life remaining		Five year usable life expected

Earnings before Depreciation and Taxes
Existing Machine			Proposed Machine
Year 1	$250,000		Year 1	$200,000
2	180,000		2	200,000
3	150,000		3	200,000
4	150,000		4	200,000
5	150,000		5	200,000

The firm pays 40 percent taxes on ordinary income and capital gains. Given the information in the table above, compute the initial investment. Show your work and describe.