1) What is the terminal cash flow for the project?

2) What is the npv of the project if we end the project after 4 years?

ABC Corporation has hired you to evaluate a new FOUR year project for the fim. The project will require the purchase of a $823,600.00 work cell. Further, it will cost the firm $50,300.00 to get the work cell delivered and installed The work cell will be straight-line depreciated to zero with a 20-year useful life. The project will require new employees to be trained at a cost of $58,300.00. The project will also use a piece of equipment the firm already owns. The equipment has been fully depreciated, but has a market value of $7,100.00. Finally, the firm will invest $10,600.00 in net working capital to ensure the project has sufficient resources to be successful The project will generate annual sales of $914,000.00 with expenses estimated at 38.00% of sales Networking capital will be held constant throughout the project. The tax rate is 36.00% The work cell is estimated to have a market value of $474,000.00 at the end of the fourth year. The firm expects to reclaim 88.00% of the final NWC position The cost of capital is 10.00%