Please solve the following, show all calculations/steps and do not use online calculators/financial calculator.

Degnan Dance Company, Inc., a manufacturer of dance and exercise apparel, is considering replacing an existing piece of equipment with a more sophisticated machine. The following information is given. Facts Existing Machine Proposed Machine Cost = $100,000 Cost = $150,000 Purchased 2 years ago Installation = $20,000 Depreciation using MACRS over Depreciation-the MACRS a 5-year recover schedule 5-year recovery schedule will be used Current market value = $105,000 Five year usable life remaining Five year usable life expected Earnings before Depreciation and Taxes Existing Machine Proposed Machine Year 1 $160,000 Year 1 $170,000 2 150,000 2 170,000 3 140,000 3 170,000 4 140,000 4 170,000 5 140,000 5 170,000 MACRS 5-Year:Year 1:20%, Year 2: 32%, year 3: 19% The firm pays 40 percent taxes on ordinary income and capital gains. Given the information above, compute the initial investment