The Director of Capital Budgeting of Capital Assets Corp

The Director of Capital Budgeting of Capital Assets Corp.is considering the acquisition of a new high speed photocopy machine.The photocopy machine is priced at $85,000 and would require $2,000 in transportation costs and $4,000 for installation.The equipment will have a useful life of 5 years.The proposal will require that Capital Assets Corp.send technician for training at a cost of $5,000.The firm's marginal tax rate is 40 percent.How much is the initial cash outlay of the photocopy machine?

A) $58,600
B) $64,000
C) $77,000
D) $81,000
E) $96,000