Abc inc is considering the purchase of a new equipment the, Finance Basics

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Abc inc is considering the purchase of a new equipment the

Question: ABC, Inc is considering the purchase of a new equipment. The equipment costs $35,532 and an additional $3,667 is needed to install it. The project will also require an initial $3,795 investment in net working capital. The equipment will be depreciated straight-line to zero over a five-year life. What is the project's initial investment outlay?

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