Coffee-Cola is considering a project for a new bottled beverage called Lots-A-Latte. The project would require new assets today costing $320,000 that would be depreciated (expensed) immediately (at t = 0) using 100% Bonus Depreciation. Additional net working capital of $15,000 would be needed at the beginning of the projects life and would be recovered at the end of the project. The project has a 3-year expected useful life with an expected salvage value of $90,000 at the end of the 3-year expected useful life. Coffee-Cola expects annual sales of $250,000 and annual operating costs of $110,000 during the 3-year life of the project. Coffee-Colas marginal tax rate is 25% and their WACC is 8% Refer to Coffee-Cola, What is the initial (t = 0) cash flow for the Lots-A-Latte project?

$255,000

$335,000

$225,000

$240,000