Landscapes Unlimited has spent $2,200 evaluating a new service area for expanding its business territory. The expansion

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Landscapes Unlimited has spent $2,200 evaluating a new service area for expanding its business territory. The expansion will require the purchase of a new truck for $35,000, and fitting the truck with a flatbed that will cost $6,500 to install. The company would realize $8,250 in after-tax proceeds from the sale of an old truck. If Landscapes’ working capital is unaffected by this project, what is the initial investment amount for this project?

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Principles of Managerial Finance

ISBN: 978-0134476315

15th edition

Authors: Chad J. Zutter, Scott B. Smart

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