Question $5$

$2$ pts

A $$88,000$ machine with a $8-$year class life was purchased $5$ years ago. The machine will now be sold for $$31,000$ and replaced with a new machine costing $$60,000,$ with a $5-$year class life. The new machine will not increase sales, but will decrease operating costs by $$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. IN OTHER WORDS, IF YOUR ANSWER IS $-10,000,$ ENTER IT AS $10,000.$ DO NOT ENTER THE DOLLAR SIGN.