1. what is the initial outlay?

2. what is the FCF for year 1 and 2?

3. what is the after-tax salvage value?

PLEASE HELP ASAP

The Board of Directors of National Brewing Inc is considering the acquisition of a new still. The still is priced at $400,000 but would require $60,000 in transportation costs and $40,000 for installation. Purchase of the still would increase inventories by S150,000, accounts receivable by $50.000, and accounts payable by $70,000. The still has a useful life of 4 years but will be depreciated using 5-year MACRS The applicable MACRS depreciation rates are 20%, 32%, 19%, 12%, 11% and 6%. It is expected to have a salvage value of $80,000 at the end of 4 years. The still would increase revenues by $120.000 in year 1. $160,000 in year 2. and $200,000 in years 3 and 4. Annual operating costs are projected to be 20% of revenues. The firm marginal tax rate is 40%, and the project's cost of capital is 10%