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What is the total cash outflow at time zero

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Reference no: EM132594898

AFB, Inc. requires an investment in equipment of $600,000 to replace existing equipment. The existing equipment will produce after tax salvage value of $70,000. Net working capital requirements are increased by $50,000. What is the total cash outflow at time zero (i.e. initial outlay)?

(this answer is NOT correct) Selected Answer:$650,000

Answers:

A.$720,000

B. $580,000

C.$530,000

D. $650,000

Reference no: EM132594898

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