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Business, 18.12.2019 17:31 25linm

You are evaluating a potential investment in equipment. the equipment's basic price is $191,000, and shipping costs will be $7,600. it will cost another $19,100 to modify it for special use by your firm, and an additional $9,600 to install it. the equipment falls in the macrs 3-year class that allows depreciation of 33% the first year, 45% the second year, 15% the third year, and 7% the fourth year. you expect to sell the equipment for 34,100 at the end of three years. the equipment is expected to generate revenues of $179,000 per year with annual operating costs of $84,000. the firm's marginal tax rate is 20.0%. what is the initial outlay for the project? a. $208,200b. $191,000c. $227,300d. $210,100d. $193,200

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