Blue Ocean Co

Multiple Choice

Blue Ocean Co.already spent $85 000 on a feasibility study for a machine that will produce a new product.The machine will cost $2 575,000.Required modifications will cost $375,000.Blue Ocean will need to invest $75,000 for additional inventory.The machine has an IRS approved useful life of seven years; it is presumed to have no salvage value.It will only be operated for three years, after which it will be sold for $600,000.What is the total investment amount required for the project?

A) $3,025,000
B) $2,950,000
C) $2,575,000
D) $2,350,000