In the Fourth and Final Year of a Project, SVC

Multiple Choice

In the fourth and final year of a project, SVC expects operating cash flow of $440,000. The project required an $80,000 investment in working capital at the beginning. Of that amount, $60,000 will be recovered in year 4. Machinery associated with the project will be sold for exactly its undepreciated value of $15,000. Total free cash flow for the fourth year is

A) $75,000.
B) $1,500,000.
C) $515,000.
D) $535,000.