All of the Following Are Related to a Proposed Project

question 17

Multiple Choice

All of the following are related to a proposed project.Which of these should be included in the cash flow at time zero?
I.purchase of $1,400 of parts inventory needed to support the project
II.loan of $125,000 used to finance the project
III.depreciation tax shield of $1,100
IV.$6,500 of equipment needed to commence the project

• A)I and II only
• B)I and IV only
• C)II and IV only
• D)I, II, and IV only
• E)I, II, III, and IV

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