MKF Corporation purchased new machinery for a list price of $100,000. The company paid sales tax of $2,300 and delivery and installation charges of $3,800 to get the new machine up and running. MKF sold its old machine, which had a book value of $1,000 for $3,000 cash. MKF is subject to a 25% tax rate. Calculate the initial investment.

$97,500

$106,100

$108,600

$103,600