Lucky Luke Lollipops (LLL) is a sweet company wanting to establish a factory in Cape Town as opposed to producing in Benoni and then shipping the products to the Western Cape. The company employed Logistix, a firm of supply chain consultants, to evaluate the idea. Logistix concluded that this would achieve a net savings of R2,200,000 a year in transport costs over the next ten years Logistix invoiced LLL R80,000 for this research. They have located an acceptable site that would cost R3,000,000 to purchase and another R800,000 to develop. The company can purchase the necessary machinery for R2,500,000, transportation and installation will cost R450,000. The machinery has a useful life of 10 years left and an expected 10 residual value LLL estimates that the factory would require an investment in inventory etc, of R900,000 increasing to R1,500,000 in year two LLL anticipates the new plant to have a turnover of R3,000,000 in the first year and R5,000,000 per year thereafter. The company depreciates its assets according to the straight-line method and its tax rate is 30. What would the initial outlay be that LLL should use in evaluating this project?