You are purchasing an equipment for $ 200,000 for your new store. Assume the store has no other expenses or revenues other than those associated with this project. You are going to purchase an additional $ 12,500 of inventory for production with the new equipment and set up a cash account with a $ 2,000 balance. The inventory purchase will result in an account payable of $ 4,500. The firm's tax rate is 20%. 

What is the net cash flow at time zero?

Answer rating: 100% (QA)

Given that cost of equipment 200000 Inventory purchased 12500 Cash ... View the full answer