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Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $ 1 7 million, and production and sales will require an
Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $ million, and production and sales will require an initial $ million investment in net operating working capital. The company's tax rate is Enter your answers as a positive values. Enter your answers in millions. For example, an answer of $ should be entered as Round your answers to two decimal places.
a What is the initial investment outlay?
b The company spent and expensed $ on research related to the new project last year. What is the initial investment outlay?
c Rather than build a new manufacturing facility, the company plans to install the equipment in a building it owns but is not now using. The building could be sold for $ million after taxes and real estate commissions. What is the initial investment outlay?
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