In Step Video is considering expanding its DVD rental library to8,000 disks. The purchase
In Step Video is considering expanding its DVD rental library to8,000 disks. The purchase price of the additional disks will be$80,000 and the shipping cost is another $4,000. To house thedisks, the owner will have to spend another $10,000 for displayshelves, increase net working capital by $5,000, and interestexpenses will add another $8,000 to the operating cost. What is theinitial investment to In Step Video for this project?
a. $ 95,000
b. $ 99,000
c. $ 84,000