Your company purchased a packing machine two years ago at a cost of $86,000. The machine is being depreciated using simplified straight-line and the asset has a 5-year class life. You have consulted with a packing machine sales specialist and have determined that the old machine is now outdated. The specialist has estimated the salvage value of the old machine at $60,000. You have decided to replace the old machine with a new one that will be purchased immediately. The new machine will cost $152,000 and have associated shipping costs of $14,000. The new machine will have a 6-year class life and will increase sales by $75,000 per year. The firm's marginal tax rate is 34%. What is the initial outlay for the project? $86,000 $108,856 $166,000 $119,674 $89,423