Question $1$

$5$ pts

Thaler & Co$.$ has a flotation adjusted capital outlay of $$26,000,000$ for its project. They plan to depreciate their asset at $$2,000,000$ per year, for its useful life. The project requires a $$4,000,000$ increase in accounts receivable, a $$7,000,000$ increase in inventory, and a $$2,000,000$ increase in accounts payable. Thaler has a $25\%$ tax rate.

What should Thaler recognize as its cash flow in year $0,$ at the start of the project?

$$42,000,000$

$$38,000,000$

$$35,000,000$

$$33,000,000$

$$44,000,000$