Project Expand will require $350,000 to replace some existing machinery. capitalized expenditures total $40,000. The after-tax salvage value of the old machinery will provide $90,000 to the firm. The new machine will require that the frim purchase some additional inventory which will result in an increase in net working capital of $50,000. What is the initial cash outflow?

$270,000

$300,000

None of the above are correct.

$350,000