Question: A $72,000 machine with a 9-year class life was purchased 3 years ago. The machine will now be sold for $23,000 and replaced with a

A $72,000 machine with a 9-year class life was purchased 3 years ago. The machine will now be sold for $23,000 and replaced with a new machine costing $65,000, with a 5-year class life. The new machine will not increase sales, but will decrease operating costs by $16,000 per year. Simplified straight line depreciation is employed for both machines, and the marginal corporate tax rate is 34 percent. What is the initial outlay for the project? NOTE -- ALTHOUGH THE INITIAL OUTLAY IS NEGATIVE, PLEASE ENTER YOUR ANSWER AS A POSITIVE SIGN

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