The initial outlay calculation for an ____ project normally includes ____.

A) asset expansion; pretax proceeds from the sale of the old asset
B) asset replacement; pretax proceeds from the sale of the old asset
C) asset expansion; after-tax proceeds from the sale of the old asset
D) asset replacement; after-tax proceeds from the sale of the old asset

The question is asking about the initial outlay calculation for an asset replacement project, which involves selling the old asset and purchasing a new one. Therefore, the pretax proceeds from the sale of the old asset are not relevant. Instead, the after-tax proceeds should be used in the calculation to account for any taxes owed on the sale of the old asset. Option D correctly includes asset replacement and after-tax proceeds from the sale of the old asset.