Initial investment amount for project


Problem:

Canvas Reproductions, Inc., has spent $4,500 dollars researching a new project. The project requires $20,000 worth of new machinery, which would cost $3,000 to install. The company would realize $4,500 in after-tax proceeds from the sale of old machinery.

Required:

Question: If Canvas's working capital is unaffected by this project, what is the initial investment amount for this project?

Note: Please provide through step by step calculations.

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Accounting Basics: Initial investment amount for project
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