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Your company is considering an expansion into a new product area. The company has collected the following information about the proposed product. -The project has

Your company is considering an expansion into a new product area. The company has collected the following information about the proposed product. -The project has an anticipated economic life of 5. years. -The company will have to purchase a new machine to produce the product. The machine has an up-front cost (T=0) of $750,000. The machine will be depreciated on a straight-line basis over 5 years (that is, the company's depreciation expense will be $150,000 in each of the first five years (T=1, 2, 3, 4 and 5). -If the company goes ahead with the project, it will have an affect on the company's net working capital. At the outset, T=0, inventory will increase by $50,000 and accounts payable will increase by $30,000. At T=5, the networking capital will be recovered after the project is completed. -The project is expected to produce EBIT of $200,000 the first year (T=1), $300,000 the second and third years (T=2 and 3), $200,000 the fourth year (T=4), and $150,000 the final year (T=5). These values already include operating costs that are expected to equal 50 percent of sales revenue and depreciation expense. -The company's tax rate os 40 percent. What is the total cash flow in year 0 (T=0)?

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