1. AMC Company is considering a new investment. The fixed asset will be depreciated straight-line to zero over its five-year tax life, after which it will be worthless. Financial projections for the investment are tabulated here. The corporate tax rate is 30%. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Yearo Year 1 Year 2 Year 3 Year 4 Year 5 Investment 3 000 000 Sales 1 200 000 1 500 000 2 000 000 2 800 000 3 500 000 Costs 480 000 600 000 800 000 1 120 000 1 400 000 ? Net Working Capital 50 000 80 000 100 000 150 000 180 000 a. Compute the net income of the investment for each year. b. Compute the incremental cash flows of the investment for each year. c. Suppose the appropriate discount rate is 10%. What is the NPV of the project? (10 marks) (12 marks) (10 marks)