Alloy Corp is considering the acquisition of a new processing line. The processor can be purchased

for $4,550,000. It will cost $65,000 to ship and $190,500 to install the processor.

A recently
completed feasibility study that was performed at a cost of $45,000 indicated that the processor
would produce a positive NPV. Studies have shown that employee-training expenses will be
$150,000. What is the total investment in the processing line for capital budgeting purposes?
A) $5,000,500 B) $4,700,000 C) $4,955,500 D) $4,550,000


C

Business

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