Forrester Inc. purchased a $150,000 machine that has a five-year life and no salvage value. The company uses straight-line depreciation on all asset acquisitions and is subject to a 20% tax rate. The proper cash flow to show in a discounted-cash-flow analysis as occurring at time 0 would be:

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The proper cash flow to show in a discounted-cash-flow analysis as occurring at time 0 would be the initial cost of the asset, which in this case is $150,000. This represents the outflow of cash required to acquire the asset and should be entered as a negative cash flow. None of the other given options represent the correct cash flow to show at time 0.