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Homework answers / question archive / Investment Outlay Talbot Industries is considering launching a new product
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%.
The amount is computed as follows:
= cost of equipment + investment in net operating working capital
= $ 13,000,000 + $ 4,000,000
= $ 17,000,000
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