You are evaluating the acquisition of a new ski machine. Its price is $200,000, and it costs $40,000 to install. It falls into the MACRS 3-year class. The machine will save the firm's operating costs by for $125.000 per year and require a $10.000 increase in inventory when it is installed. It will be used 4 years and then sold for $25,000. Your firm's tax rate is 40%, and the project's cost of capital is 10% (MACRS depreciation schedule for a 3-year class asset is: 33%, 45%15%, 7%). What is the initial net investment outlay in Year 0? $210,000 $240,000 $230,000 $250,000 $200,000