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Project Costs?


An investment project will need the purchase of a machine that costs $100000 and $10000 for shipping. Market research for the project costs $10000. R&D expenditure already incurred is $10000. Activities of the project will be conducted in an empty warehouse owned by the firm. Market value of the warehouse is $35000. An immediate inventory of $1500 is needed. What is the initial outlay of the project, if tax rate is 30%?

a. $166500
b. 131500
c. 146500
d. 156500

Thanks in advance for any help. I really appreciate it.

A

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