Jose's Cantinas Incorporated Plans to Expand

Multiple Choice

Jose's Cantinas Incorporated plans to expand. This will require the acquisition of new equipment. The equipment will cost $85,000 including delivery and installation. Additional net working capital of $25,000 will be needed immediately. Land for the expansion cost Jose's $100,000 three years ago, but could be sold to net $200,000 after taxes today. Compute the net investment for this project.

A) $185,000
B) $310,000
C) $210,000
D) $285,000