Williard Inc replaced an old machine with a new one that was bought for $143,774.This spent an additional $23,906 in installation cost. This Is a bigger machine is expected to save l $46,043 In working capital. The old machine that was being depreciated under MACR'S method is a five year asset class was bought 6 years ago for $75,000 and is now fully depreciated. and is sold to a dealer for $15,061XYZ is in 40% tax bracket.

The initial investment is