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Shere Khan Corporation is currently evaluating a new project. Relatively inexpensive equipment with an estimated cost of $300 000 would be purchased, but shipping costs

Shere Khan Corporation is currently evaluating a new project. Relatively inexpensive equipment with an estimated cost of $300 000 would be purchased, but shipping costs to move the equipment would total $25 000 and installation charges would add another $15 000 to the total equipment costs. Further, the company's inventories would have to be increased by $20 000 at the time of initial investment. The straight-line depreciation rate is 20% and corporate tax rate is 25%. What is the cash outflow in Year 0?

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