Truman Industries is considering an expansion. The necessary equipment would be purchased for $10,000, and the expansion would require an additional $1,000 investment in net operating working capital. The tax rate is 40%.

a) What is the initial investment outlay?

b) The company spent and expensed $500 on research related to the project last year. Would this change your answer?

c) The company plans to use a building that it owns to house the project. The building could be sold for $600 after taxes and real estate commissions. Would this change your answer?