A project will require $543,000 for fixed assets, $118,000 for inventory, and $142,000 for accounts receivable. Short - term debt is expected to increase by $65,000. The project has a six-year life. The fixed assets will be depreciated straight - line to a zero book value over the life of the project. No bonus depreciation will be taken. The project is expected to generate annual sales of $905,000 with costs of $730,000. What is the project's cash flow at Time 0?

Answer rating: 100% (QA)

To calculate the cash flow at Time 0 we sum up all the initial investments an... View the full answer