You are evaluating a project and currently trying to calculate the final cash flows for all periods in a project. Please calculate only the final initial cash flow for Year 0. Assume the project will conclude at the end of year 4 and NOWC will be reduced at t-4 to 0. INPUTS: PRICE: $2.00 per unit at t=0 WACC: 10.0% annually VC RATE: 70.0% of revenues Tax RATE: 25% marginal Price/Unit Inflation 3% annually Depreciation Method 3-yr MACRS Equipment Cost $195,000 Shipping cost $10,000 Installation Cost $30,000 Increase in inventory $5,000 (yr 0 only) Increase in Accounts payable $0 (yr O only) Salvage Value $15,000 end of year 4 or $70,000 end of year 3 Return of NWC Occurs in Yr 4 *3-year MACRS use 33.33%, 44.45%, 14.81% and 7.41% for the four years What is the initial cash flow? $200,000 -$210,000 $230,000 --$240.000 -$220,000