Adam Smith is considering automating his pin factory with thepurchase of a $4750

Adam Smith is considering automating his pin factory with thepurchase of a $475000 machine. Shipping and installation wouldcost $5000. Smith has calculated that automation would result insavings of $45000 a year due to reduced scrap and $65000 a yeardue to reduced labor costs. The machine has a useful life of 4years and falls in the 3-year property class for MACRS depreciationpurposes. The estimated final salvage value of the machine is$120000. The firms marginal tax rate is 34 percent. Theincremental cash outflow at time period 0 is closest to