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A corporation has decided to expand into the Rocky Mountain region in the USA. To expand, they will need new equipment with a purchase price
A corporation has decided to expand into the Rocky Mountain region in the USA. To expand, they will need new equipment with a purchase price of $200,000 and installation costs (shipping, testing and installing) of $25,000. Due to the expansion, Accounts Receivable will increase by $30,000, inventory will increase by $25,000 and accounts payable will increase by $20,000. What is the initial investment cash flow?
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