14) Exclusive Golfing Supplies (EGS), an outdoor golfing equipment producer that specializes in personalized, precision golf clubs, engaged in a laboratory analysis to test the newest metallic compounds on the market. In Stage I, the project-identification stage, EGS learned of a new compound that is expected to increase the precision and improve the quality of golf clubs. In Stage II, the information-gathering stage, the cost of new machinery and training is computed to produce materials associated with the new technology. The results of the analysis revealed $580,000 the cost of new machinery and $16,000 total training gear to run the new machines. The managerial accountant reported that the cash flow from the disposal of the current equipment is $42,000.
Required
Compute the net initial investment of the new machine.
A) $560,000
B) $554,000
C) $610,00
D) $570,000
E) $590,000
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