FOR PART B SELECT EITHER "YES" OR "NO"

13-1: Identifying Relevant Cash Flows Problem 13-1 Investment Outlay Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $18 million, and production and sales will require an initial $4 million investment in net operating working capital. The company's tax rate is 40%. a. What is the initial investment outlay? Write out your answer completely. For example, 2 million should be entered as 2,000,000 b. The company spent and expensed $150,000 on research related to the new product last year. Would this change your answer? -Select- c. 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. How would this affect your answer? The project's cost wi-Select- increase decrease not change