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What is the project cash flow at time 0

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CHRISTINA is considering a project that will require $534,000 for fixed assets, $218,000 for inventory, and $41,000 for accounts receivable. Short-term debt is expected to increase by $165,000. 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. The project is expected to generate annual sales of $905,000 with costs of $730,000. The tax rate is 25 percent and the required rate of return is 12 percent. What is the project's cash flow at Time 0?

Reference no: EM132139900

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