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Given the following information to outfit a new Fed-Ex duplicating facility in the United States, what is TOTAL cash flow in year 0 (CF0)?: Facility

Given the following information to outfit a new Fed-Ex duplicating facility in the United States, what is TOTAL cash flow in year 0 (CF0)?:

Facility construction: $15M

NWC: $1M

OCF: $3.65M

Project lifespan: 5 years

Salvage Value at end-of-life: $2M

Marginal tax rate: 35%

WACC: 10%

Multiple Choice

-$15M

$15M

-$16M

-$14M

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