The ABC Corporation is considering the acquisition of a new machine. The machine can be purchased for
$90,000; it will cost $6,000 to transport to ABC's plant and $9,000 to install. It is estimated that the machine
will last 10 years, and it is expected to have an estimated salvage value of $5,000. Over its 10-year life, the machine is expected to produce 2,000 units per year with a selling price of $500 and combined material
and labor costs of $450 per unit. Federal tax regulations permit machines of this type to be depreciated using the straight-line method over 5 years with no estimated salvage value. ABC has a marginal tax rate of 40 percent.
What is the net cash outflow at the beginning of the first year that ABC Corporation should use in a capital budgeting analysis?