Firm X is considering a new project. The cost of the machine is $155,000. The cost of shipping and installation is an ad

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Firm X is considering a new project. The cost of the machine is$155,000. The cost of shipping and installation is an additional$10,000. Sales are expected to be $375,000 per year. The operatingcosts will be 60% of sales. The project will require an increase innet working capital of $35,000 and the beginning of the project.The project will last four year at which time the firm will sellthe machine for $25,000. The firm’s tax rate is 20% and cost ofcapital is 8%. Assume the machine is fully depreciated at the endof the fourth year. What is the cost of the initial outlay?Multiple Choice $200,000 $165,000 $190,000 $155,000