What is the initial investment outlay for talbot industries

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Problem 1: Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $19 million, and production and sales will require an initial $1 million investment in net operating working capital. The company's tax rate is 25%. What is the initial investment outlay?

Problem 2: The company spent and expensed $150,000 on research related to the new project last year. What is the initial investment outlay?

Problem 3: 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 $1.6 million after taxes and real estate commissions. What is the initial investment outlay?

Reference no: EM132951687

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