The Munsell Color Company is considering the purchase of a new batch polymer-bonding machine for producing its number one line of crayons. Although the machine being considered will not produce any increase in sales revenues, it will result in the before-tax reduction of labor costs by $200,000 per year. The machine has a purchase price of $250,000, and it would cost an additional $10,000 to install the machine. In addition, to operate this machine, Inventory must be increased by $15,000. The machine is categorized as 10-year property. After 2 years, it can be sold for $150,000. The tax rate is 34% and the cost of capital is 15%. What is the initial cash flow for the project? MACRS Depreciation Rates Year 10-Year 10.00% 18.00% 15-Year 5.00% 9.50% 8.55% 14 40% OA - $275,000 OB. - $250,000 OC - $285,000 OD. - $265.000 OL - $200.000 Click to select your swer