Question: Truman Industries is considering an expansion. The necessary equipment would be purchased for$10,000, and the expansion would require an additional $1,000 investment in net operating

Truman Industries is considering an expansion. The necessary equipment would be purchased for$10,000, and the expansion would require an additional $1,000 investment in net operating working capital. The tax rate is 40%. What is the initial investment outlay? The company spent and expensed $500 on research related to the project last year. Would this change your answer? The company plans to use a building that it owns to house the project. The building could be sold for$600 after taxes and real estate commissions. Would this change your answer? a) -$11,000; b) No C) Yes a) -$11,000; b) Yes c) No a) -$9,000; b) No; c) Yes a) -S-$9,000; b) Yes; c) No a) -$6,600; b) Yes; c) No

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