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A project has an installed cost of $500,000 and requires an additional working capital investment of $100,000. The project replaces an existing piece of equipment that has an estimated salvage value of $7000 and has a book value of $2000. The firm’s marginal tax rate is 40 percent. What is the Initial Outlay for this project?

User Mandrake
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Answer:

Please see attachment .

Step-by-step explanation:

Please see attachment

A project has an installed cost of $500,000 and requires an additional working capital-example-1
User Hosein Aqajani
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