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Business, 17.04.2020 02:17 kelenski4

Scottech is examining an investment opportunity that will involve buying $120,000 worth of equipment. They will need $10,000 in net working capital up front. Shipping will cost $5,000 and installation will cost $10,000. The firm paid a management consultant $4,000 to analyze this project, which is supposed to increase sales by $20,000 per year. If the firm accepts the project, they will have to spend $3,500 to train the employees to use the new equipment. The corporate tax rate is 21%. What is the initial outlay for the project?

Group of answer choices

($148,500)

($126,500)

($130,500)

($150,500)

($123,000)

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Answers: 1

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