Computer Disk? Duplicators, Inc. has been considering several capital investment proposals for the year beginning in 2014. For each investment? proposal, the relevant cash flows and other relevant financial data are summarized in the table below. In the case of a replacement? decision, the total installed cost of the equipment will be partially offset by the sale of existing equipment. The firm is subject to a 40 percent tax rate on ordinary income and on long-term capital gains. The? firm's cost of capital is 15 percent.

For Proposal? 1, the initial outlay equals? ________. (select best answer)

a) 1,440,000

b) 1,500,000

c) 1,380,000

d) 1620,000

Prop osal Type of Capital BudgetingDecision Expansion Replacement Type of Project Cost of new asset Installation costs MACRS (new asset) Original cost of old asset Purchase date (old asset) Sale proceeds (old asset) MACRS (old asset) Independent $1,500,000 $0 10 years N/A* N/A N/A N/A Mutually Exclusive with3 $200,000 $0 5 years $80,000 1/1/2000 $50,000 5 years Replacement Mutually Exclusive with 2 $300,000 $15,000 5 years $100,000 1/1/2003 $120,000 5 years