Question: A company is considering replacing an old machine, which has a market value of $120,000 and a tax basis of $50,000. The new machine would

A company is considering replacing an old machine, which has a market value of $120,000 and a tax basis of $50,000. The new machine would cost $240,000 and would require an additional $10,000 in working capital for spare parts. If the company's tax rate is 33%, what would be the initial cash outlay for this replacement project?

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