A $$250,000$ machine with a $15-$year class life was purchased $3$ years ago and has a current salvage value of $$175,000.$ The machine will now be replaced with a new machine costing $$225,000$ with a $12-$year class life. The new machine will not increase sales but will decrease operating costs by $$26,000$ per year. Simplified straight line depreciation is employed for both machines, and the marginal corporate tax rate is $21$ percent.

$9.$ What is the initial outlay for the project?

a$)$ $$30,650$

b$)$ $$44,750$

c$)$ $$22,915$

d$)$ $$15,890$

e$)$ $$39,635$

$10.$ What is the incremental annual cash flow associated with the project in year $1?$

a$)$ $$16,320$

b$)$ $$17,820$

c$)$ $$19,960$

d$)$ $$20,977$

e$)$ $$26,062$