QUESTION 22 Your company is considering the addition of a new product line. The project would require the purchase of a new piece of machinery at a price of $110.000. The fully depreciated machine will be sold at the end of the project for $25,000. Additional charges of $12,000 for delivery, $2,000 for installing and $500 for testing of the machine will also be incurred before the project can begin. Purchasing the machine will cause inventories to increase by $10,000. The machine will produce incremental gross sales of $175,000 each year, but also incur additional operating costs of $20,000 each year. The new project would lower pre-tax sales of the firm's other products by $16,000 each year, but it would also cause an annual $6,000 reduction in costs for the other products, due to decreases in volume. If the firm proceeds with this project, it will be giving up $3,000 annual rent that it now receives from renting out the space where the machine will be used. The firm's marginal tax rate is 40%. Assume no Inflation Calculate the Net Investment Outlay at Time o. O $100,000 O $110,000 O $113,500 $123,500 O $134,500