You are considering starting a new factory producing small electric heaters. Each unit wil sell at a price of $1550. The production cost of each hester is $1280. You are oxpecting to celi 670 units per year. This project has an economic lfe of 6 years. The project roquires an investment of 5590000 in plants and equipment. This equipment will be depreciated to zero salvage value based on 5 -year MACRS schedule. The depreciation rates from year 1 to 6 are 20%,32%,19.2%,11,52%,11.52%, and 5.76 percent, %. respectively. The company will sell its old equipment for $45000. The old machine is fully depreciated. The required rate of return for the project is 12 percent, the working capilal requirement is 15 percent of the next year's sales revenue. The marginal corporate tax rate is 21 percent. At the termination of the project, the plant and equipment will be sold for an estirnated value of $34000. Based on these assumptions, estimato the cash flow for capitol expenditures, What is the net capital expenditure at the initiation of the project? 599000 554450 563140 545000