Question: A. XYZ Corp. is considering introducing a new 90 flat screen television/monitor for the consumer market The company will have to purchase a new machine

 A. XYZ Corp. is considering introducing a new 90" flat screen

A. XYZ Corp. is considering introducing a new 90" flat screen television/monitor for the consumer market The company will have to purchase a new machine to produce the screens. The machine's invoice price would be $4.020,000. The company anticipates that the machine will last for four years and then have no salvage value. Last year, a market research study for the new product cost $2 million. If the company goes ahead with the proposed product, it will have an effect on the company's net working capital. At the outset (i.e., att =0), inventory will increase by S190,000 and accounts payable will increase by $70,000. Att = 4, the networking capital will be recovered after the project is completed. What is the initial investment for the project? $6,020.000 $4,140,000 $6,140,000 56,120,000 86,280,000

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