Earthscape corporation plans to spend $2 million for new equipment. shipping and installation charges will amount to $200,000 and an initial increase in net working capital of $50,000 will be required. the equipment will replace older, less efficient equipment. the old equipment has a book value of $75,000, but earthscape can sell it for $100,000. if earthscape has a 21% corporate tax rate, what is the amount of their initial outlay for this project?

Consider a treasury bill with a rate of return of 5% and the following risky securities: security a: e(r) = .15; variance = .0400 security b: e(r) = .10; variance = .0225 security c: e(r) = .12; variance = .1000 security d: e(r) = .13; variance = .0625 the investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. the security the investor should choose as part of her complete portfolio to achieve the best cal would be a. security a b. security b c. security c d. security d