(Estimated time allowance: 4 minutes) Pipo Inc. is planning to launch a new project called DEAP and is looking at setting up a needed and new manufacturing plant in Miami, FL. Pipo Inc. is going to build the plant in a piece of land that it bought 3 years ago for $2 million that has remained empty ever since (was for expansion of its warehouse, but Pipo Inc. decided to lease a building nearby for those purposes). Today, the value of the land net of taxes is estimated at $2.6 million. The plant will cost $12 million to build, and the site requires $1.4 million worth of improvements before it is suitable for construction. Launching the project will require an investment in working capital today in the amount of $1.8 million, which will be recovered at the end of the project. In addition, new equipment in the amount of $3.8 million is needed for the project. The plant is depreciated over 30 years and the equipment over 5 years (both using straight-line depreciation method). The tax rate is 20%. The discounting rate is 10%. What is the initial outlay (IO) for the NPV evaluation of this project? Answers below in millions of dollars a) 12.00 b) 13.40 c) 15.80 d) 17.60 e) 17.80 f) 19.00 g) 19.60 h) 20.20 i) 21.60