Tannen Industries is considering an expansion.The necessary equipment would be purchased for $18 million, and the expansion would require an additional $2 million investment in net operating working capital.The tax rate is 40%.

a.What is the initial investment outlay?

b.The company spent and expensed $20 million on research related to the project; last year.Would this change your answer?Explain.

c.The company plans to use a building that it owns to house the project the building could be sold for $1 million after taxes and real estate commissions.How would that fact affect your answer?