Save Awes Question 19 of 21 Question 19 10 points Exhibiti: A firm is considering a 3-year project with the following information: In Year 0 New equipment will be purchased for $400,000 Inventories will rise by $60,000 and accounts payable will rise by $25,000 In Years 1 through 3: In Years / and 2. net working capital will not change In Year 3. her working capital will be fully recovered In Years / through 3. Operating Cash Flow will be $63.600 per year In Year 3. equipment will be sold for $40,000 (before-fax). Equipment will be depreciated using MACRS rates of 33% 45% 15% 7% in Years 1.2.3.4 Tax rate 40% In addition to information in Exhibit I, you have realized new facts. The new equipment will be operated in a vacant building already owned by the firm. The firm purchased the building for $200,000 two years ago and estimates that selling the building today would result in an after-tax cash flow of $300,000. Considering this additional information, what is the project's initial investment cash flow (a.k.a. cash flow from investment in Year 0)? O a $700,000 b.-5660,000 O C. -$760,000 Od. -S635,000 O 0-$735,000