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Problem:

Truman Industries is considering an expansion. The necessary equipment would be purchased for $12 million, and the expansion would require an additional $2 million investment in net operating working capital. The tax rate is 40%.

Required:

Question: What is the initial investment outlay?

Note: Please show the work not just the answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170486

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