Market Top Investors, Incorporated, is considering the purchase of a $$425,000$ computer with an economic life of five years. The computer will be fully depreciated over five years using the straight$-$line method, at which time it will be worth $$35,000.$ Below I am providing some more information about the main characteristics and implications of this project:

The computer will replace two office employees whose combined annual salaries are $$95,000.$

The machine will immediately lower the firm's required net working capital by $$40,000.$

The computer will allow the company to undertake a diversified set of projects, that will require an investment in inventory equal to $$12,000$ and a reduction in accounts receivables towards clients equal to $$2,000$ for each of the $4$ years subsequent to year $0($that is the year when the new computer is bought$).$

Any amount invested in net working capital will need to be replaced once the machine is sold. The corporate tax rate is $22$ percent. The appropriate discount rate is $9$ percent.

COMPUT THE CASH OUTLAY OF THE PROJECT AT TIME $0$