A capital project requires a $50,000 increase in working capital. It also requires equipment at...

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Finance

A capital project requires a $50,000 increase in working capital. It also requires equipment at a price of $240,000. The income tax rate is 25% and the equipment is eligible for bonus depreciation for income tax purposes (it's all deductible in year 0). What is the project's initial cash flow? Group of answer choices 290,000 230,000 50,000 180,000 37,500

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