Calculating 'cash flows at the start'

Dingo Enterprises operates boat tours. It is evaluating whether to purchase a new jetboat to operate scenic thrill rides around Rottnest Island. The jetboat costs $1,700,000 and is expected to have an economic life of ten years. The company plans to issue $1 million worth of equity in a private placement to help fund this.

Last year Dingo Enterprises spent $7,000 on market research to assess consumer interest in jet boat rides around Rottnest Island. The CEO recommends this cost be included in this project evaluation.

To accommodate the new jetboat, Dingo Enterprises will need to extend the jetty it currently uses for its two other boat tours (the snorkelling tour and glass bottom boat tour). The jetty extension will require capital expenditure of $200,000 which can be depreciated on a straight-line basis over five years. The CEO suggests the jetty extension expenditure should be shared equally between the three boat tours.

If the jetty is extended, Dingo Enterprises will dismantle and sell an interactive display board that is positioned at the end of the jetty. This interactive display board has a market value of $15,000 but has been fully depreciated for tax purposes.

The new jetboat tour will result in an increase in inventory for Dingo Enterprises from $25,000 to $32,000. The company anticipates that accounts payable will increase by $6,000 to $20,000.

As the new jetboat is equipped with the latest technology. As a result, the three jetboat tour drivers which work for Dingo Enterprises immediately need to undertake a three-hour training class to be able to operate the new jet boat. This training class costs $2,000 per driver. The training costs are tax deductible.

Assume the company tax rate is 30%.

What are the 'cash flows at the start'?