In order to launch a new line

In order to launch a new line of lawn mowers, your company needs to make the following investments. Equipment that costs $200,000 (today) and will be depreciated down to zero over 10 years using straight- line depreciation. The equipment will be sold for $10,000 at the end of 5 years (the life of the project is 5 years). Net working capital investment of $10,000 at the beginning of the project (year O), which is reduced back to its original level in the final year of the project. The tax rate is 40 percent and the discounting rate for the project is 12%. What is the initial outlay (Cash flow today for this project? ** If this is a cash outflow, enter the negative sign in front of the first digit of your answer; if this is a cash inflow, do not enter a sign, simply enter the number. Do not use the S sign. Use commas to separate thousands. Round to two nearest dollar. For example if you obtain $1,432.728 then enter 1.434 or if you obtain $1,120.1321 then enter 1,120

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