(The following information applies to the next seven problems.) You must evaluate a proposal to buy a new machine. Its base price is $50,000, installation costs would add another $10,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $40,000. The depreciation rates would thus be 38%, 45%, 15% and 7% for the first 4 years. The machine would require $8,000 increase in net working capital Marginal tax rate is 40% and WACC is 10%. In addition, Fixed costs are expected to be $50,000 each year, and the firm spent $10,000 last year on market research. The below is expected information about the project. Year 1 2 3 Price 120 120 120 Quantity 500 600 Variable Cost 20000 18000 24000 450 1. The initial Cash Outlay is * a. 40,000 b. 50,000 c. 60,000 d. 68,000 e. None of the above