Caitlin's Real Estate is considering offering a new product. This product requires an investment of $160,000 in new fixed assets and $29,450 in net working capital, all of which is recoverable at the end of the project. The fixed assets will be depreciated straight-line to zero over the 7-year life of the project. The company spent $10,000 to hire a consult to estimate the potential costs and revenue associated with this project. The consultant projects the product will produce annual sales of $107,500 with annual costs of $67,500. At the end of the project, the company should be able to sell the fixed assets for $43,800.

Identify the cash flows at the start and end of the project.

CF0=

CF7=