1. What is the annual after tax operating cash flow for year 1 of the project?

2. What is the after tax cash flow from the salvage value?

3. What is the payback Period for the project?

4. What is the NPV of the project?

5. What is the IRR of the project?

BB (This information will be used for problems 27 - 33) Silvio's Sausage Factory has come up with a new line of spicy sausages. Silvio has already paid $75,000 for a marketing study to determine the viability of the product. It is believed that the new line of sausages will generate sales of $625,000 per year for four years. The fixed costs associated with the product will be $215,000 per year, and variable costs will amount to 22% of sales. The equipment necessary for production of the new sausages will cost $545,000 and will be a depreciated to zero using straight line depreciation over four years. At the end of the four years Silvio believes the equipment will have a salvage value of $40,000. Silvio's Sausage paid 35% in taxes last year and has a required rate of return of 13%. What is the annual after tax operating cash flow for year 1 of the project? O $224,813.00 O $229,275.00 O $80,275.00 O $625,000.00 O $149,000.00