Earthscape Corporation plans to spend $2.3 million for new equipment. Shipping and installation charges will amount to $200,000 and an initial increase in net working capital of $60,000 will be required. The equipment will replace older, less efficient equipment. The old equipment has a book value of $85,000, but Earthscape can sell it for $120,000. If Earthscape has a 21% corporate tax rate, what is the amount of their initial outlay for this project?

a) $2,560,000 b) $2,440,000 c) $2,454,700 d) $2,447,350 e) $2,432,650