Project xyz requires an investment in equipment of 500000


Project XYZ, requires an investment in equipment of $500,000 to replace existing equipment. The existing equipment will produce after-tax salvage value of $50,000. Net working capital requirements are increased by $50,000. What is the total cash outflow at time zero?

a. $400,000

b. $450,000

c. $500,000

d. $600,000

 

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Finance Basics: Project xyz requires an investment in equipment of 500000
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