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Blue Ocean is considering an investment of $ 1 5 million in an asset with an economic life of 5 years. The asset would require

Blue Ocean is considering an investment of $

15

million in an asset with an economic life of

5

years. The asset would require an additional $

3

million investment in net operating working capital. Blue Ocean will use the straight

-

line method to depreciate its asset to zero over five years. The tax rate is

30 % .

What is the initial investment outlay?

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