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Consider the following proposed project for Regal Corp. Cost of new equipment: $170,000 Shipping/Installation: $10.000 Change in Net Operating Working Capital: $40,000 New sales per
Consider the following proposed project for Regal Corp. Cost of new equipment: $170,000 Shipping/Installation: $10.000 Change in Net Operating Working Capital: $40,000 New sales per year: $140,000 New operating costs per year: $60,000 Economic life: 4 years Depreciable life: MACRS 3-year class (33%, 45%, 15%,7%) Salvage value: $18,000 Tax Rate: 25% WACC 8% What is the total initial year investment outlay, or FCFG? $170,000 $320,000 $180,000
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