QUESTION 7 XYZ Corporation is considering a new three-year expansion project that has an initial fixed asset cost of $3 million. The project also requires an initial investment in net working capital of $200,000. The fixed asset will be depreciated straight-line to zero salvage value over its three-year tax life, after which time it will be worth $175,000 (MV3 New = $175,000). The project is estimated to generate $1,650,000 in annual sales, with costs of $650,000. XYZ's corporate tax rate is 40 percent. What is the initial investment requirement (I) for this project? $3,000,000 $2,800,000 $1,650,000 $3,200,000