A firm is considering a new project that will require an immediate cash outlay of $12 million for equipment and $580,000 for a new heating system for the building. The firm already owns the building which cost $3.70 million 7 years ago and is currently used for storage. What is the net cash flow in year zero for the purposes of capital budgeting?

a.

$4,280,000

b.

$15,700,000

c.

$15,096,000

d.

$16,280,000

e.

$12,580,000