Your company is considering replacing an old steel cutting machine with a new one. Two years ago, you sent the company engineers and a marketing manager to evaluate business opportunity $($feasibility study$)$ from the new machine$$s operation and efficiency. The $$3,500$ cost for this feasibility study has already been paid. If the new machine is purchased, it would require $$5,500$ in installation and modification costs to make it suitable for operation in your factory. The old machine originally cost $$50,000$ five years ago and is being depreciated by $$5,000$ per year. The new machine will cost $$85,000$

before installation and modification. The old machine can be sold today for $$10,000.$ The marginal tax rate for the firm is $20\%.$

a$)$ What is the after$-$tax cash flows from selling the old machine?

b$)$ Compute the relevant initial outlay in this capital budgeting decision $($netting out money from selling old machine$).$