In Step Video is considering expanding its video rental library to 8,000 tapes.The purchase price of the additional videos will be $80,000 and the shipping cost is another $4,000.To house the tapes, the owner will have to spend another $10,000 for display shelves, increase net working capital by $5,000, and interest expenses will add another $8,000 to the operating cost.What is the net investment to In Step Video for this project?
A)$95,000
B)$99,000
C)$84,000
D)$107,000

Question

Quizplus · Accepted Answer

NINV = $80,000 + $4,000 + $10,000 + $5,000 = $99,000

In Step Video Is Considering Expanding Its Video Rental Library