1. Projected Total Cash Flows (50 points) Firm A is considering a project which will initially require $12,000 for new equipment. The equipment will be depreciated straight line to a zero-book value over the three-year life of project. In addition, the project will require an investment of $30,000 in net working capital which will be recovered at the end of the project. Annual sales are $45,000 with cost of $32,400. The tax rate is 34% What is the net present value of this project if the required return is 14%