Initial Cash Flow: $60,000

Net Operating Cash Flow: $10,000

Terminal Cash Flow: $30,000

Using the values assumed and an assumption that you will receive Net Operating Cash Flows for Five years; will sell the business at the end of five years and have a cost of capital (discount rate, interest rate, WACC) associated with the project equal to 12%, answer the following questions. What cash flows do you receive (cash inflows) and what cash flows do you pay (cash outflows)?