Madison Manufacturing is considering a new machine that costs $2,984,000.0 and would reduce pre-tax manufacturing costs by $746,000.0 annually. Madison would use the 3-year MACRS method to depreciate the machine, and management thinks the machine would have a value of $358,080.0 at the end of its 5-year operating life. The applicable depreciation rates are 33.33%, 44.45%, 14.81%, and 7.42%. Working capital would increase by $447,600.0 initially, but it would be recovered at the end of the projects 5-year life. Madisons marginal tax rate is 45.00%, and a 9.00% WACC is appropriate for the project. How much is the initial outlay (year zero net cash flow)?

($3,431,600) ($3,475,875) ($816,500) ($7,417,500) ($2,346,000)