Jefferson Corporation Is Considering an Expansion Project

Multiple Choice

Jefferson Corporation is considering an expansion project.The necessary equipment could be purchased for $15 million and shipping and installation costs are another $500,000.The project will also require an initial $2 million investment in net working capital.The company's tax rate is 40%.What is the project's initial investment outlay (in millions) ?

A) $15.0
B) $15.5
C) $16.5
D) $17.0
E) $17.5