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
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