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43. Galaxydoughs Tea Ltd. has been considering a special investment for some time. This project will require an immediate capital expenditure of $1 million for

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43. Galaxydoughs Tea Ltd. has been considering a special investment for some time. This project will require an immediate capital expenditure of $1 million for required equipment. Galaxydoughs Tea will house the equipment in an unused warehouse. Galaxydoughs Tea has no other intended use for the warehouse but is aware that it could be rented out at $70,000 a year. Galaxydoughs Tea will also use equipment purchased a year ago for $525,000 (current market value: $300,000) that was not ready for use, and therefore, had not been capitalized for the purposes of tax-related amortization. Cash flow before taxes and amortization is expected to be $355,000

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