16. what js the value of the depreciation tax shirld in year 3 of the project?

17. what us the amount id the net (after-tax) salvage value of the equipment?

18. what us the recovery amount attributable to net working capital at the end of the project?

19. what is the operating cash flow each year?

20. what is the IPR of this project?

Use the following information to answer questions 16-20. Be sure to show your work as partial credit will be given if I can figure out where you started to go wrong. Layla's Distribution Co. is considering a project which will require the purchase of $1.6 million in new equipment. The equipment will be depreciated straight-line to a zero book value over the 5-year life of the project. Layla's expects to sell the equipment at the end of the project for $180,000. Annual sales from this project are estimated at $1.3 million, and you will incur $100,000 in fixed costs and variable costs equal to 10% of sales. Net working capital equal to 30 percent of sales will be required to support the project and built up in the beginning. All of the net working capital will be recouped at the end of the project. The firm desires a minimal 12 percent rate of return on this project. The tax rate is 30 percent