Black Lung Mining is considering opening a new coal mine. Black Lung’s beta is 0.8. Black Lung paid $15 million for the property six years ago. A recently completed feasibility study estimated that...

Black Lung Mining is considering opening a new coal mine. Black Lung’s beta is 0.8.
Black Lung paid $15 million for the property six years ago. A recently completed
feasibility study estimated that new machinery and equipment at the mine will cost $33
million, working capital requirements will increase by $500,000 immediately, and
employee-training expenses will be $125,000. The feasibility study cost $1,000,000.

What amount should Black Lung use as its initial outlay in the capital budgeting
analysis?