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La Montrealaise Transportation Company Is Considering a Project, Which Requires

Question 24

Multiple Choice

La Montrealaise Transportation Company is considering a project, which requires the purchase of a fleet of trucks costing $500,000.It will need to spend $65,000 to modify the trucks before they can be put into operation.The associated opportunity costs are $35,000.In addition, the company will need to spend $10,000 on additional spare parts inventory.What is the initial capital cost associated with the investment opportunity?


A) $500,000
B) $565,000
C) $575,000
D) $610,000

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