A new project is expected to generate an operating cash flow of $75,560 and will initially free up $12,250 in net working capital. Purchases of fixed assets costing $75,000 will be required to start up the project. What is the total cash flow for this project at Time zero?

- $62,750

Explanation:

The computation of the total cash flow for the zero time is shown below:

The total cash flow is

= Purchase of fixed assets - net working capital

= - $75,000 + $12,250

= - $62,750

Hence, the total cash flow for the project is -$62,750

We simply applied the above formula and the same is to be considered

the correct option is c

answerobservation;