Bayshore Wines is considering expanding its winemaking operations. The expansion will require new equipment costing $708,000 that would be depreciated on a straight-line basis to a zero balance over the four-year life of the project. The equipment can be sold at salvage for $220,000 after the four years. The project requires $46,000 initially for additional net working capital, all of which will be returned at the end of the project. The projected operating cash flow is $211,500 a year. The required rate of return is 13%, and the tax rate is 34%.

6) What are the cash flows for the project? (5 points)

Question 6 options:

	A. -754,000, 211,500, 211,500, 211,500, 402,700
	B. -754,000, 211,500, 211,500, 211,500, 191,500
	C. -708,000, 211,500, 211,500, 211,500, 402,700
	D. -708,000, 211,500, 211,500, 211,500, 191,500
	E. -708,000, 211,500, 211,500, 211,500, 257,500