Question $23(4$ points$)$

You are evaluating a potential investment in equipment. The equipment's basic price is $$184,000,$ and shipping costs will be $$3,700.$ It will cost another $$23,900$ to modify it for special use by your firm, and an additional $$12,900$ to install it$.$ The equipment falls in the MACRS $3-$year class that allows depreciation of $33\%$ the first year, $45\%$ the second year, $15\%$ the third year, and $7\%$ the fourth year. You expect to sell the equipment for $29,200$ at the end of three years. The equipment is expected to generate revenues of $$168,000$ per year with annual operating costs of $$82,000.$ The firm's marginal tax rate is $45\mathrm{.}0\%.$ What is the initial outlay for the project?

$$195,300$

$$184,000$

$$200,600$

$$207,900$

$$224,500$