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With the following capital budgeting elements, identify the cash outflows and cash inflows that you would use to judge the attractiveness of a project by

With the following capital budgeting elements, identify the cash outflows and cash inflows that you would use to judge the attractiveness of a project by using the time-value-of-money yardsticks: capital assets ($1.5 million), working capital in year 1 ($500,000) and year 2 ($200,000), salaries ($140,000), working capital loan ($190,000), residual value at the end of the 11th year ($1 million), profit for the years 1 to 10 ($300,000), mortgage ($1.1 million), non-cash expense ($50,000), revenue ($300,000), and sunk costs ($100,000). The projects lifespan is 10 years and the cost of capital is 8%.

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