A firm will make a cash outlay of $125,000 for a piece of equipment. Assume the firm has no other expenses or revenues other than those associated with this project. The firm is going to purchase an additional $7,500 of inventory for production with the new equipment and set up a cash account with a $2,500 balance. The inventory purchase will result in an account payable of $6,500. The firm already paid $3,000 for an engineering study to support the case for making the investment. The firm's tax rate is 40%. What is the net cash outflow at time zeroa. Less than 120,000b. Between 120,000 and 125,000c. Between 125,000 and 130,000d. Greater than 130,000e. Cannot be determined with this information

The correct answer to this question is C,between $125000 and $130000 as the actual net cash flow at time zero is $128500 as shown below.

Explanation:

The net cash flow at zero is the equipment capital outlay plus net increase in working capital(capital meant for day to day running of the business)

The net cash flow is computed thus:

Equipment                                       $125000

Net working capital investment

Inventory                        $7500

plus cash                        $2500

less account payable    ($6500)

                                                           $3500

                                                           $128,500

enlightenment impacted society by introducing the idea that mankind could use reason to discover the laws of the world and the rights of mankind. these ideals affected all factions of society, from politics to religion.

anjan should should report alteast 5000 on the first apyment and 10,000 each year

explanation: