David Davis is reviewing a capital budgeting proposal from TA, Inc. TA is considering investing in a new machine. The details of the proposal are as follows: . O The machine costs $460,000 and installation costs $40,000. O The machine will be depreciated using the straight-line method to zero over a five-year life. O During the life of the machine, an inventory investment of $80,000 is required. O The machine is expected to generate additional revenues of $350,000 per year. O The machine is expected to reduce TA's cash operating expenses by $20,000 per year O After five years, the machine will be sold for $90,000. O TA is in the 35% tax bracket and its cost of capital is 12%. TA's net investment outlay is closest to: A. $500,000 B. $540,000 C. $580,000