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A firm is considering a project that requires a time t=0 cash outlay of $100,000 for...

  1. A firm is considering a project that requires a time t=0 cash outlay of $100,000 for a piece of equipment. The firm will depreciate this equipment to zero via straight line depreciation over an eight year economic life. The project will require the purchase of an additional $8,000 of inventory at time t=0. The inventory purchase will result in an account payable of $3,500 at time t=0. The firm's tax rate is 40%. What is the net cash flow at time t=0?

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