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Can you please help me with this question Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $8 million, and
Can you please help me with this question
Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $8 million, and production and sales will require an initial $1 million investment in net operating working capital. The company's tax rate is 35%. a. What is the initial investment outlay? Write out your answer completely. For example, 2 million should be entered as 2,000,000. b. The company spent and expensed $150,000 on research related to the new product last year. Would this change your answer? ( -Select- c. Rather than build a new manufacturing facility, the company plans to install the equipment in a building it owns but is not now using. The building could be sold for $1.5 million after taxes and real estate commissions. How would this affect your answer? The project's cost wiv -Select- increase decrease not changeStep by Step Solution
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