Earthscape Corporation plans to spend $2 million for new equipment. Shipping and installation charges will amount to $200,000 and an initial increase in net working capital of $50,000 will be required. The equipment will replace older, less efficient equipment. The old equipment has a book value of $75,000, but Earthscape can sell it for $100,000. If Earthscape has a 21% corporate tax rate, what is the amount of their initial outlay for this project?

a) $2,250,000 b) $2,150,000 c) $2,144,750 d) $2,155,250 e) $184,475