Calculating cash flows at the start PepCo (PEPC) is considering opening a new bar. Managers want to raise equity to help fund the opening of the new bar. PEPC will pay dividends totalling $10,000 to the shareholders every year. The new bar costs $100,000 today. If the new bar goes ahead, PEPC must immediately dispose of old equipment valued at $20,000 today. The old equipment initially cost $60,000 five years ago and is fully depreciated for tax purposes. For the new bar, PEPC forecasts that $10,000 of inventory will be required today, and an additional $3,000 of accounts receivable will be required today on top of the existing level of $2,000. Over the past four months, PEPC has already incurred expenses of $3,000 relating to market research used to identify the popularity of new drink combinations to be served at the new bar. PEPC will have a marketing event on the day the new bar opens, and will include a celebrity appearance from Nick Kyrgios. The marketing event will cost $5,000 (this cost is a tax deductible expense). For the new bar, the accounts payable balance will decrease from the current level of $13,000 to $11,000 if the new bar proceeds. Assume the company tax rate is 30%. What are the 'cash flows at the start'? [Describe and list separately each cash flow and the corresponding amount on a new line, as in lecture and tutorial examples.] [Where applicable, show as much working out as possible, otherwise you may be penalised].