What is the initial cash flow for this investment

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Bar-All Locks has just purchased a casting machine for a ultra-security locking system. The cost of the machine was $2,150,000 but they spent $200,000 investigating whether or not there would be business for this type of locking system before they decided to evaluate this new investment. The machine cost $250,000 to make it ready for production.

What is the initial cash flow for this investment?

Reference no: EM13270121

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