ttt 2. Texas Tires is considering replacing an old machine with a new, more efficient, one. The new machine will cost $1.2 million. The old machine originally cost $714,000 4 years ago and was being depreciated straight line over a 7 year life. The old machine can now be sold for $325,000. The firm has a 30 % tax rate. Calculate the initial outlay on the new machine. 2