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8. A tech form is considering a capital expenditure project that will involve purchasing new equipment costing $15,000 with an additional $2,000 charge for delivery.
8. A tech form is considering a capital expenditure project that will involve purchasing new equipment costing $15,000 with an additional $2,000 charge for delivery. Installation lf the equipment is expected to be $1,200. the equipment has an expected life of 5 years and an estimated salvage value of $8,000. The proposed project will require an additional woking capital investment of $2,000. Revenues for the project are forecasted to be $19,000 per year and cash expenses to be $8,000. The firm has a 35% marginal tax rate and has a 15% weighted average cost of capital. Calcualte the initial cash outlay for the proposed project.
a $10,200
b, none
c. 28,200
d 20,200
e. 31,200
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