Exhibit I: A firm is considering a 3-year project with the following information: In Year 0: 1. New equipment will be purchased for $400,000. 2. Inventories will rise by $60,000 and accounts payable will rise by $25,000. In Years I through 3: 1. In Years 1 and 2, net working capital will not change. 2. In Year 3, net working capital will be fully recovered. 3. In Years 1 through 3, Operating Cash Flow will be $63,600 per year. 4. In Year 3, equipment will be sold for $40,000 (before-tax). 5. Equipment will be depreciated using MACRS rates of 33%, 45%, 15%, 7% in Years 1, 2, 3, 4. 6. Tax rate = 40%. What is the project's initial investment cash flow (aka cash flow from investment in Year 1)? a. None of the above b. -$460,000 C. -$400,000 d. -$485,000 e. -$435,000