A new project is expected to generate an operating cash flow of $38,728 and will initially free up $11,610 in net working capital. Purchases of fixed assets costing $52,800 will be required to start up the project. What is the total cash flow for this project at Time zero?

The aggregate cash flow for the project at time zero is $41,190

Explanation:

The net cash outflow at time zero is computed as:

Net cash outflow at time zero = Cash outflow for purchase fixed assets at time zero - Cash inflow for the net working capital at time zero

where

Cash outflow for purchase fixed assets at time zero is $52,800

Cash inflow for the net working capital at time zero is $11,610

Putting in the above formula:

= $52,800 - $11,610

= $41,190