Task 2 The firm evaluates the proposed acquisition of a new machine. The machine's basic price is 50,000 and it will cost another 10,000 to modify it for special use. The machine will be sold after 3 years for 20,000, and it will require an increase in net operating working capital (spare parts inventory) of 2,000. The purchase of the machine will have no effect on sales revenues, but it is expected to save the firm 20,000 per year in before-tax operating costs, mainly labor. The tax rate is 30%. The information about depreciation of the machine is given in the table below. The book value of the machine at the end of year 3 will be 4, 200 (initial cost minus accumulated depreciation). Year 1 Year 2 Year 3 Annual depreciation expense 19.800 27.000 9.000 1) Determine the project's initial investment outlay