Tannen Industries is considering an expansion. The necessary equipment would be purchased for 10 million and the braion would require an addition 2 milion investment net operating working capital. The tax rate 40% a What is the in cal investment outlay? Round your answer to the nearest dollar. Write not our answer completely. For completion should be entered as 13.000.000 b. The company spent and expensed $20,000 on research related to the project sit Year Woud thus change your answer why 1. No, last year's expenditure is considered a sunt cost and does not meant cash flow. Hence, should not be o the analys 11. Yes, the cost of research is an incremental cash flow and should be induced in the analysis III Yes, but only that affect of the research expenses should be induded in the analysis IV No, last year's spenditure should be treated as a terminal cash flow and dealt within of the project's life anco, it should not be induded in the initial vestment outlay V. No. last year's expenditure is considered as an opportunity cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis The company plans to use a bulding that it owns to house the project. The building could be sold for 55 milion after takes and cool state commessons. How would that tact affect your answer? The potential sale of the building represents an opportunity cost of conducting the project in that building. Therefore, the possible proceeds after taxes and commissions must be charged against the project as a cost 11. The potential sale of the bulding represents an oportunity cost of conducting the project in that building, Meratore, the possible proceeds before tacos and commissions must be charged against the project a cost it. The potential sale of the bulding represents an externality and therefore should not be acid glinste project IV. The potential sale of the building represents a real option and therefore should be charged against the project The poterbale of the building reresents a real option and Derefore should not be charged against me project Select