Question $4$

$2pts$

A $$87,000$ machine with a $9-$year class life was purchased $5$ years ago. The machine will now

be sold for $$21,000$ and replaced with a new machine costing $$60,000,$ with a $5-$year class

life. The new machine will not increase sales, but will decrease operating costs by $$16,000$

per year. Simplified straight line depreciation is employed for both machines, and the

marginal corporate tax rate is $34$ percent. What is the initial outlay for the project? NOTE $--$

ALTHOUGH THE INITIAL OUTLAY IS NEGATIVE, PLEASE ENTER YOUR ANSWER AS A

POSITIVE SIGN. IN OTHER WORDS, IF YOUR ANSWER IS $-10,000,$ ENTER IT AS $10,000.$

DO NOT ENTER THE DOLLAR SIGN.