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What is the initial investment outlay

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Question - Investment Outlay - Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $11 million, and production and sales will require an initial $2 million investment in net operating working capital. The company's tax rate is 25%. Enter your answers as a positive values. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answers to two decimal places.

a. What is the initial investment outlay?

b. The company spent and expensed $150,000 on research related to the new project last year. What is the initial investment outlay?

c. Rather than build a new manufacturing facility, the company plans to install the equipment in a building it owns but is not now using. The building could be sold for $1.5 million after taxes and real estate commissions. What is the initial investment outlay?

Reference no: EM133116061

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