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What is the initial investment outlay

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Question - Firm AAA is considering launching a new product. The new manufacturing equipment will cost $10 million, and production and sales will require an initial $3 million investment in net operating working capital. The company spent and expensed $1 million on research related to the new product last year. The company plans to install the equipment in a building it owns but is not now using. The building could be sold for $4 million after taxes and real estate commissions. What is the initial investment outlay (t=0)?

Reference no: EM133045850

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