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You are evaluating a potential investment in equipment. The equipment's basic price is $ 1 3 3 , 0 0 0 , and shipping costs
You are evaluating a potential investment in equipment. The equipment's basic price is $ and shipping costs will be $ It will cost another $ to modify it for special use by your firm, and an additional $ to install it The equipment falls in the MACRS year class that allows depreciation of the first year, the second year, the third year, and the fourth year. You expect to sell the equipment for at the end of three years. The equipment is expected to generate revenues of $ per year with annual operating costs of $ The firm's marginal tax rate is What is the initial outlay for the project?
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