Business, 18.08.2020 22:01 radcon8099

Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $16 million, and production and sales will require an initial $3 million investment in net operating working capital. The company's tax rate is 30%. 1. What is the initial investment outlay? Write out your answer completely. For example, 2 million should be entered as 2,000,000.
$
2. The company spent and expensed $150,000 on research related to the new product last year. Would this change your answer?
A. Yes
B. No
3. 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 will:

Answers: 2

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

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