You are evaluating a new project for Chet Holmgren, Inc. $($CHI$).$ The project requires an initial investment of $$550,000$ which will be depreciated using the $3-$year MACRS schedule $($Year $1=33\%,$ Year $2=45\%,$ Year $3=15\%,$ Year $4=7\%).$ The project will increase revenues by $$202,000$ and will increase costs by $$70,000$ each year for the next four years. The project will be sold at the end of $4$ years for $$10,900.$ The project requires an increase in net working capital investment of $$16,000$ which will be recovered at the end of the project$$s life. The tax rate is $25\%$ and the required return on the project is $10\%.$

What is the total initial cash outlay for this project?

Multiple Choice

$-$$$424,500$

$-$$$566,000$

$-$$$534,000$

$-$$$550,000$