Your company is considering replacing an old steel cutting machine with a new one. Two months ago, you sent the company engineer to a training seminar demonstrating the new machine's operation and efficiency. The $22,500 cost for this training session has already been paid. If the new machine is purchased, it would require $50,000 in installation and modification costs to make it suitable for operation in your factory. The old machine originally cost $350,000 five years ago and is being depreciated by $50,000 per year. The new machine will cost $750,000 before installation and modification. It will be depreciated by $75,000 per year. The old machine can be sold today for $150,000. The marginal tax rate for the firm is 40%. Compute the relevant initial outlay in this capital budgeting decision.