Question: ( 1 1 - 1 ) Talbot Industries is considering launching a new product. The new manufacturing Investment Outlay equipment will cost $ 1 7

(11 - 1)

Talbot Industries is considering launching a new product. The new manufacturing Investment Outlay equipment will cost $

17

million, and production and sales will require an initial $

5

million investment in net operating working capital. The company's tax rate is

25 % .

.

What is the initial investment outlay?

.

The company spent and expensed $

150, 000

on research related to the new product last year. What is the initial investment outlay?

.

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?

(11-1) Talbot Industries is considering launching a new product. The new

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