A New Project Is Expected to Generate an Operating Cash

question 95

Multiple Choice

A new project is expected to generate an operating cash flow of $75,560 and will initially free up $12,250 in net working capital.Purchases of fixed assets costing $75,000 will be required to start up the project.What is the total cash flow for this project at Time zero?

• A)-$64,410
• B)- $62,750
• C)-$75,000
• D)-87,250
• E)$62,250

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