Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Investment Outlay Talbot Industries is considering launching a new product

Investment Outlay Talbot Industries is considering launching a new product

Finance

Investment Outlay

Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $13 million, and production and sales will require an initial $4 million investment in net operating working capital. The company's tax rate is 35%.

  1. What is the initial investment outlay? Write out your answer completely. For example, 2 million should be entered as 2,000,000.
    $ _______________

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

The amount is computed as follows:

= cost of equipment + investment in net operating working capital

= $ 13,000,000 + $ 4,000,000

= $ 17,000,000

Please ask in case of any doubts