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Business, 23.04.2021 17:50 TheSillyMichael1566

A company is trying to determine the initial investment for a four-year replacement project. The company owns some land that was originally purchased for $1,000,000. The land can be used for this new project but if the project is not undertaken, then the land can be sold for $2.4 million. The initial capital expenditure for this project will be $15.8 million. Because this is a replacement project, management feels that inventory will be reduced by $2.18 million but that will be reversed at the end of this project. The company also spent $1.49 million on a marketing survey to determine the feasibility of this project. What is the initial outlay at time 0 for this project

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