A company is considering replacing an old machine, which has a market value of exist95,000 and a tax basis of exist145,000. The new machine would cost exist210,000 and would cause a exist25,000 reduction in working capital because of the need for fewer spare parts. If the company's tax rate is 39%, what would be the initial cash outlay for this replacement project? 1) exist70, 500 2) exist159, 500 3) exist120, 500 4) exist129, 500 5) exist109, 500