Cash Flow at Time Zero
All of the following are related to a proposed project. Which of these should be included in the cash flow at time zero?
1. purchase of $1400. of parts inventory needed to support project
2. loan of $125,000 used to finance the project
3. depreciation tax shield of $1,100
4. $6500 of equipment needed to commence the project.
a. 1 and 2 only
b. 1 and 4 only
c. 2 and 4 only
d. 1, 2, and 4 only
e. 1, 2, 3 and 4