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A new project is expected to generate an operating cash flow of $85,560 and will initially...

A new project is expected to generate an operating cash flow of $85,560 and will initially free up $10,475 in net working capital. Purchases of fixed assets costing $85,000 will be required to start up the project. What is the total cash flow for this project at Time zero?

A) −$75,085

B) −$74,525

C) −$85,000

D) −$87,250

E) $62,250

Solutions

Expert Solution

Investment in fixed cost $         -85,000
Free up working capital $          10,475
Cash flow at 0 year $         -74,525
Correct Answer =B) −$74,525

jeff jeffy answered 2 years ago
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