Jefferson Industries is considering an expansion. The necessary equipment would be purchased for $6 million and will be fully depreciated at the time of purchase. The expansion would also require an additional $3 million investment in working capital. The tax rate is 25 percent. Last year, the company spent and expensed $400,000 on research related to the project. The company plans to house the project in an unused building it owns. If the building were sold, it would net $1.4 million after taxes and real estate commissions. What is the initial investment outlay for this project after bonus depreciation is considered?

Selected Answer:	d. $10.4 million
Answers:	a. $8.9 million
	b. $9.4 million
	c. $10.8 million
	d. $10.4 million
	e. $6.8 million