问一道题：NO.PZ2018101501000028

问题如下：

Company M has invested $20 million in fixed capital and another $5 million in working capital in a ten-year project. The equipment will be depreciated straight-line to zero over five years. It will generate additional annual revenues of $1.5 million and reduce annual cash operating expenses of $0.5 million. After ten years, the equipment will be sold for $3 million. The tax rate and the required rate of return are 25% and 10% respectively. What`s the initial outlay and the terminal year non-operating cash flow, respectively?

选项：

$25 million and $8 million

$25 million and $7.25 million

$20 million and $7.25million

解释：

B is correct.

考点：Cash Flow Projections: Expansion Project

解析：Initial Outlay = FCInv+NWCInv - Sal₀+T(Sal₀– B₀) = 20+ 5 – 0 + 0 = $25 million

TNOCF = Sal₁₀ +NWCInv - T(Sal₁₀ - B₁₀) = 3 + 5 - 0.25*(3-0) = $7.25 million