We are considering replacing a piece of equipment with a newer model. The old equipment was purchased five years ago for $100,000. Accounting records show that the accumulated depreciation as of today is $60,000. The current estimated disposal value of the old equipment is $20,000. The new equipment under consideration will cost $200,000. The applicable tax rate for all transactions is 30%. What is the net initial cost of the new equipment after adjusting for the proceeds from the sale of the existing equipment and the tax effect of the gain or loss on the disposal of the existing equipment? A) $166,000 B) $186,000 C) $180,000 D) $174,000