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Truman Industries is considering an expansion. The necessary equipment would be purchased for $20,000, and the expansion would require an additional $2,000 investment in net

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Truman Industries is considering an expansion. The necessary equipment would be purchased for $20,000, and the expansion would require an additional $2,000 investment in net operating working capital. The tax rate is 40%. a) What is the initial investment outlay? b) The company spent and expensed $1,000 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 $1,200 after taxes and real estate commissions. Would this change your answer? a)-$22,000; b)No; c)Yes a)-$18,000; b)No; c)Yes a)-$18,000; b)Yes; c)No a)-$22,000; b)Yes; c)No a)-$13,200; b)Yes; c)NO

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