Question 17 1 pts Franco is considering the purchase of new equipment. To begin the project, the equipment costs $350.000, and an additional $120,000 is needed to install it. An inventory investment cost of $90,000 is also required at the start of the project. The equipment will be depreciated straight-line to zero over a five-year life. The equipment will generate additional annual revenues of $250,000, and it will have annual cash operating expenses of $80,000. The equipment will be sold for $70,000 after five years. Franco is in the 40 percent tax bracket and its cost of capital is 10 percent. What is the initial outlay (year o cash flow) for this project? Initial outlay is $560,000 Initial outlay is $545,000 Initial outlay is $520,000 Initial outlay is $515,000