What would be initial cash outlay for this expansion project

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Reference no: EM131608055

A company is considering expanding it's product line. A new machine would be required that costs $170,000.The new product would cause a $10,000 increase in accounts receivable, a $15,000 increase in inventory, and a $12,000 increase in accounts payable. If the company’s tax rate is 33%, what would be the initial cash outlay for this expansion project?

A) $157,000

B) $207,000

C) $185,000

D) $183,000

E) $196,000

Reference no: EM131608055

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