beauty corp. is planning to add manufacturing capacity by installing new high-tech machines. the machines would increase revenues by $200,000 per year and increase costs by $50,000 per year. the new machines cost $560,000 and would fully depreciated at the time of purchase. investment in net working capital of $30,000 would be required at the time of installation. the firm is planning to keep the machines for 7 years and then sell them for $80,000. the firm has a required rate of return on investment projects of 13% and a marginal tax rate of 25%. what is the initial outlay in the year zero?
