Wilson Company is considering replacing an existing piece of capital equipment. Relevant information includes: New equipment cost is $240,000; Expected annual savings is $76,000; Incremental working capital is $24,000. The incremental working capital will be recovered at the end of the project's life. Based on this information, an NPV analysis will show for Year 0 as a:

a. $216,000 outflow.

b. $264,000 outflow.

c. $188,000 outflow.

d. $140,000 outflow.