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marshall27 [118]
3 years ago
8

You are thinking about a project to expand your business. In order to start the project, you have to invest $200,000 in new equi

pment and $50,000 in working capital. You have to spend $15,000 for installation and $5,000 for shipping of the equipment. A few months ago, you spent $7,000 in consulting. The marginal tax rate of your company is 34%. What is the initial outlay of this project?
Business
1 answer:
9966 [12]3 years ago
5 0

Answer:

$270,000

Explanation:

The computation of the initial outlay of the project is shown below:

The initial outlay of this project = Purchase Price of the Asset + Installation Costs + Shipping cost + Investment in Working Capital

= $200,000 + $15,000 + $5,000 + $50,000

= $270,000

We simply added the purchased price, installation charges, shipping cost and the investment in working capital so that the initial outlay could come

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Answer:

The correct answer is (d)

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Better quality can help to reduce many costs such as customer’s dissatisfaction cost, inspection cost and warrant and service cost. When customers don't like the quality of the product they are likely to buy the same product from somewhere else that is the dissatisfaction cost. Still, maintenance cost is likely to incur no matter how good the quality is. Maintenance cost helps to keep the product clean and fresh for long-term use.

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The banking system receives a new cash deposit of $250,000. total deposits eventually rise by $1 million. the value of the reser
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The Reserve ratio will be 0.25

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f the cross-price elasticity of food and clothing (% change in demand for clothing / % change in the price of food) is -0.7, the
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Option "D" is correct.

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