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Question
Jefferson Corporation is considering an expansion project. The necessary equipment could be purchased for $15 million and shipping and installation costs are another $500,000. The project will also require an initial $2 million investment in net working capital. The company's tax rate is 40%. What is the project's initial investment outlay (in millions)?A) $15.0
B) $15.5
C) $16.5
D) $17.0
E) $17.5
Answer
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