Capital budgetin-initial investment

Assignment Help Algebra

Reference no: EM13119078

Company X is considering an expansion. The necessary equipment would be purchased for $9 million, and the expansion would require an additional $3 million investment in working capital. The tax rate is 40%.

a. What is the initial investment outlay?

b. The company spent and expensed $50,000 on research related to the project last year. Would this change the answer?

c. The company plans to use another building that it owns to house the project. The building could be sold for $1 million after taxes and real estate commissions. How would that fact change the solution?

Reference no: EM13119078

Questions Cloud

Which of the following types of mammals occur worldwide : Which of the following types of mammals occur worldwide?

How many plants sampled if no preliminary estimate available : How many plants must be sampled if no preliminary estimate is available? If less than that many plants is sampled, which answer best describes what happened?

Analyse the effects of increased demand for biofuels : Analyse the impact of an increase in the price of crops and a (proportionately smaller) decrease in the price of fuel on a low income person who spends most of her income on food (derived from crops).

Which of the following do anaerobic methanogens produce : Which of the following do anaerobic methanogens produce?

Capital budgetin-initial investment : What is the initial investment outlay? The company spent and expensed $50,000 on research related to the project last year. Would this change the answer?

Find out the tension in the cable : A flagpole of length 9 m and mass 35 kg is hinged at one end, where it is connected to a wall as sketched below. The pole is held up by a cable attached to the end. Find out the tension in the cable. (Assume the flagpole has an uniform mass distr..

Why is it important to keep the bottle covered with foil : You will take a culture of photosynthetic bacteria and bubble nitrogen gas through it to displace the dissolved in the solution. Why is it important to keep the bottle covered with foil while you do this?

Normal probability: annual salary of us workers : Assume that the average annual salary for a worker in the United States is $28,500 and that the annual salaries for Americans are normally distributed with a standard deviation equal to $6,250. Find the following

Explain the sign of the acceleration : Explain the sign of the acceleration and describe in words how the thread changes the velocity of the spider. would also like to know how to get to the answer can any one explain this to me in english?

User Account

All Pages