A proposed investment has an equipment cost of $1,400. It will have a life of 2 years. The cost will be depreciated straight-line to a zero-salvage value. Sales will be $4,250 per year, variable costs will run $420 per year, and fixed cost $130 per year. The firm will also need to invest $780 in net working capital. The corporate marginal tax rate is 33% while the average tax rate is 30%. What are the cash flows from assets (CFFA) for this project?

Question 32 options:

A) Year 0: $1,400; Year 1: $3,000; Year 2: $3,780

B) Year 0: -$1,400; Year 1: $3,000; Year 2: $3,780

C) Year 0: -$2,180; Year 1: $2,710; Year 2: $3,490

D) Year 0: -$2,180; Year 1: $2,010; Year 2: $2,790

E) Year 0: -$780; Year 1: $2,010; Year 2: $2,710