Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Tannen Industries is considering an expansion. The necessary equipment would be purchased for $11 million and will be fully depreciated at the time
of purchase, and the expansion would require an additional $2 million investment in net operating working capital. The tax rate is 25%.
a. What is the initial investment outlay after bonus depreciation is considered? Write out your answer completely. For example, 13 million should be
entered as 13,000,000. Round your answer to the nearest dollar. Enter your answer as a positive value.
$
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