For a New Project, a Company Plans to Invest $15,000

For a new project, a company plans to invest $15,000 in inventory, $8,000 in accounts receivable and $150,000 in fixed assets with a salvage value of $44,001. Accounts payable will increase by
$13,000 when the project starts. Assets are depreciated straight line to zero over the 4-year life of
The project. Taxes are 35%. Which one of the following statements is correct concerning the cash
flow in year 4?

A) $15,000 is a cash outflow from inventory.
B) The cash flow from the salvage value is equal to $44,000 multiplied by 35%.
C) $13,000 is a cash inflow from accounts payable.
D) The net salvage value is a cash outflow.
E) $8,000 is a cash inflow from accounts receivable.