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10. [8 points) XYZ Co. previously paid a consulting company $100 to analyze whether it should increase production and, based on that analysis, has decided

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10. [8 points) XYZ Co. previously paid a consulting company $100 to analyze whether it should increase production and, based on that analysis, has decided to go ahead with the project. The new project requires new equipment with a cost of $1,900, with shipping and installation expenses of $500. A $300 increase in net working capital is also necessary. XYZ Co expects the project to last for three years, at which point the equipment will have a book value and salvage value of $0.XYZ Co uses straight-line depreciation. The new equipment will generate $1,800 in sales revenue (every year starting at t= 1 and continuing without growth in years 2 and 3). Variable operating costs are expected to be 50% of the revenues from sales. The tax rate is 40%. SHOW YOUR WORK. Place answers in the table provided. | t=0 t = 1 t = 2 T t = 3 OCF NCS ANWC CFFA a. (2 points) Find the OCF for at t= 1, 2 and 3. Record in the table provided. Show your work. b. (2 points) Find net capital spending (NCS) at t= 0, 1, 2, and 3. C. (2 points) Find the change in net working capital (ANWC) at t=0, 1, 2 and 3. d. (2 points) What is the NPV of this project if the discount rate is 10%

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