You are reviewing a capital budgeting proposal for your company. Your company is considering investing in a new machine. The details of the proposal are as follows . The machine costs $460,000 and installation costs $40,000. . The machine will be depreciated using the straight-line method to zero over a five year life. . During the life of the machine, an inventory investment of $80,000 is required. . The machine is expected to generate additional revenues of $350,000 per year The machine is expected to reduce your company's cash operating expenses by $20,000 per year. After five years, the machine will be sold for $90,000. Your company is in the 35% tax bracket and its cost of capital is 12%. Your company's net investment outlay is closest to: A) $460,000 B) $500,000 C) $540,000 D) $560,000 E) $580,000