Question: A company is considering a project that will require an immediate outlay of $33 000 and $33 000 outlays for the next two years. At

A company is considering a project that will require an immediate outlay of $33 000 and $33 000 outlays for the next two years. At the end of the project, the company expects to salvage the physical assets for $58 000. The project is estimated to yield net returns of $58 000 in Year 4, $36 000 in Year 7, and $25 000 for each of the following 5 years. The required rate of return is 10.1%.

What is the value for CFo?

a.

CFo = - $58 000

b.

CFo = - $33 000

c.

CFo = - $58 000

d.

CFo = - $83 000

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