XYZ Company is considering whether a project requiring purchasing of new equipment worth investing. The firm has spent $12,000 o
n consulting 2 months prior to the project as well as $7,000 in market study about a year ago. In order to start the new project, the firm has to replace the old machine which has a book value of $0 and will be scraped. The new machine will cost the firm $220,000. In order to make the machine working condition, XYZ will spend $7,000 in installation and $3,000 in shipping. Since it will produce more, $10,000 investment in net working capital is required. The project will increase annual revenues by $125,000 and will increase annual operating cost by $45,000. The company has a marginal tax rate of 34%. It has the cost of capital of 14% and the project will last 5 years. What is the initial outlay of this project? What is the initial outlay of this project? Round to the nearest penny. Do not include a dollar sign in your answer. Type the absolute value of the answer. (i.e. If your answer is -$20,000 since it is cost to replace, type 20000 as your answer.)
As the decisions in the AGM is made on voting of the stockholders. Sharon has controlling interest in ABC Inc. because he has the more than 50% of the share holding in ABC Inc. Sharon can Terminate the election because he has the majority of voting rights and on the other hand the Jason has 5% interest and voting rights of the company which is even not enough to create a significant influence over ABC Inc. The decision of Sharon will be considered as final.
