The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firms R&D department. The equipments basic price is $89,725, and it would cost another $9,969 to modify it for special use by your firm. The chromatograph, which falls into the MACRS 3-year class, would be sold after 3 years for $35,890. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. Use of the equipment would require an increase in net working capital (spare parts inventory) of $5,276. The machine would have no effect on revenues, but it is expected to save the firm $38,793 per year in before-tax operating costs, mainly labor. The firms marginal federal-plus-state tax rate is 21.0% and its cost of capital is 14.0%. How much is the initial outlay (year zero net cash flow) for this project?

		($104,970)
		($95,046)
		($88,933)
		($138,744)
		($102,864)