The Everly Equipment Company's flange-lipping machine was purchased 5 years ago for $75,000. It had an expected life of 10 years when it was bought, and its remaining depreciation is $7,500 per year for each year of its remaining life. As older flange-lippers are robust and useful machines, this one can be sold for $20,000 at the end of its useful life.

A new high-efficiency, digital-controlled flange-lipper can be purchased for $130,000, including installation costs. During its 5-year life, it will reduce cash operating expenses by $25,000 per year, although it will not affect sales. The new equipment will have zero salvage value. MACRS depreciation will be used, and the machine will be depreciated over its 3-year class life rather than its 5-year economic life, so the applicable depreciation rates are 33.33%,44.45%,14.81%, and 7.41%(There will be no depreciation in its 5th year since it will already be fully depreciated.).

The old machine can be sold today for $30,000. The firm's tax rate is 25%, and the appropriate cost of capital is 16%.

If the new flange-lipper is purchased, what is the amount of the initial cash flow at Year 0?(Hint: you need to calculate the book value of the old machine so you can calculate its after-tax salvage value.) Round your answer to the nearest dollar. Cash outflow, if any, should be indicated by a minus sign.