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Metro Corporation will spend $1 million for special manufacturing equipment Shipping and installation charges will amount to $175,000 and an initial increase in net working

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Metro Corporation will spend $1 million for special manufacturing equipment Shipping and installation charges will amount to $175,000 and an initial increase in net working capital of $50,000 will be required. The equipment will replace an existing machine that has a salvage value of $85.000 and a book value of $110,000. If Metro has a current marginal tax rate of 34% what is the amount of the initial outlay for this project? $1.233.500 $1.225.000 51.243,700 $1.131.500 O $1,140.000

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