TTYL Industries is considering an expansion. The company spent $42,000 on research related to this project last year. The needed equipment would be purchased for $4,000,000 and an additional $250,000 would be needed for net operating working capital to support the expansion. Suppose TTYL also needs a building to house the equipment. The company already owns a building that it could use but it could also sell that building and net $325,000 after taxes and commissions. What is the initial investment outlay for this project under these circumstances?

		$4,000,000
		$4,042,000
		$4,325,000
		$4,575,000
		$4,600,000

Colton Communications' finance department has collected the following information concerning a proposed project: Sales revenues should be $1,800,000, operating costs excluding depreciation should be $1,260,000, depreciation expense should be $216,000, and interest expense should be $90,000. The company's tax rate is 15% and its WACC is 9%. What is the project's first year cash flow (CF1)?

		$375,000
		$405,000
		$422,200
		$438,750
		$491,400