The jocob chemical company is considering building a new potassium sulfate plant.
The following cash outlays are required to complete the plant;
years cash outlay 0 $4000000 1 2000000 2 500000
jacob's cost of capital is 12% and ita marginal tax rate is 40%.
a). calculate the plant's net investment
b). what is the instlled cost of the plant for tax purposes?