1. What are the relevant cash flows that should be used to analyze this project?

2. Please calculate OCF, NCS, and change in NWC

3. Based on the forecast of the cash flows, could

The CEO of Superman Sports Company, we mchancelle developed a sound technical aking bechal utaand fonded the company. Under hindi company had in minte Recently, however, the developed in the which would allowances to cut the shache hawa specialped stifinih in making them more durable and powerful. There has been preto de respective partories and has been approved. Milion, the head of the deep group tested the new product and reached the relevant content production prime Joti poned that besides the initial price tag of $390,000 for of the machines have to incur kepping, handling, and all cost ef44.500 online penting about 330.00 per machine. Currently, the company in freeting costs $28.000 franc finishing process. Inital marketing survey results indicated that the company would be eleme sales af is sewly designed bell buts by about 10 per year in the fans yeu eft thetaerre per year compared with fried sales gatherefore type of baseball hats. During the most recent year, the Company sold 220.000 boshal price of $12.50 per unit. The newly designed but was expected to 513 perut Material laboral and were expected to act The increased in and production require would all incre in controle contable, and 20.000 de wyking cap de bewed at the end twee of them www.stimated to be soon. The aiming machine purchased younge for $22. Cetty, could be sold fee S100,000, with the price expected to decline who 10,000 after see youndwe Deprecate the existing machine was being calented wing a 10-year righ-chaithe pe of no residual salvage value. The new he was expected to last for you De remaining of the old machine The new machine wildly Speciale we MACRS depreciation rates and was expected to be a market value fly. of its economic life. The Company's marginal tax nite is 22 and is he was con el capital (feated team is estimat 15%Part of the plante existing close financed by a bank loan that would nogama pagal The MACS depreciation schedules are given below The 1 + 1 20 741 1 S och KA OC DCF OCF CF NCS AWC -44,00 CEFA OLD ock octanen PaTerme in Saint Clasa - Wide Ens vextir - Fleed costs Depr EBIT NZ OCf I + Depr. Note: Amal Depr. for D- Depr. for now use MACRs Engear. Initial contra $54,500 10