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Cogswell cola purchased a machine for $237,500. The firm paid another $5,750 for delivery and installation. In addition the firm will have to hire another employee and pay them $50,000 per year to run the machine. What is the initial outlay for this machine?.

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Based on the cost of purchasing the machine and the delivery and installation fees, the initial outlay is $243,250

How much is the initial outlay?

This can be found as:

= Cost of purchasing machine + Installation and delivery cost

Solving gives:

= 237,500 + 5,750

= $243,250

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