3 of 13 (11 complete) core: 0 of 1 pt Problem 11-7 (similar to) Question Help Fee cash ftows) At present Solartech Skateboards is considering expanding its product line to include gas-powered skateboards; however, it is questionable how well they will be received by skateboarders. Although you feel there is a 40 percent chance you will sell 9,000 of these per year for 10 years (after which Sime this project is expected to shut down because solar-powered skateboards will become more popular), you also recognize that there is a 30 percent chance that you will orly sell 1,000 and also a 30 percent chance you will sell 18,000. The gas skateboards would sell for $140 each and have a variable cost of $40 each. Regardess cf how many you sell, the annual fixed costs associated with production would be $150,000. In addition, there would be an initial expenditure of $800,000 associated with the purchase of new production equipment. It is assumed that this initial expenditure will be depreciated using the simplified straight-line method down to zero over 10 years. Because of the number of stores that will need inventory, the working capital requirements are the same regardless of the level of sales. This pmoject will require a one-ime initial investment of $50,000 in net working capital, and that working-capital investment will be recovered when the project is shut down. Finaly, assume that the firm's marginal tax rate is 35 percent a What is the inibal outlay associated with this project? (Round to the nearest dollal)