Given the following information on a project: initial capital cost = $500,000; installation costs associated with the capital asset = $25,000; R&D costs associated with the project = $50,000; associated opportunity costs = $80,000; increase in raw materials inventory = $10,000,what is the initial cash outlay of the project?

Question

Quizplus · Accepted Answer

CF₀ = $500,000 + $25,000 + $10,000 + $80,000 = $615,000

Given the Following Information on a Project: Initial Capital Cost