17 Find the Present Value of an annuity due (first payment is today) that pays $ 487 monthly for 12 years using the annual rate of 2.25 %. and the A new Investment requires 187,000 to buy the location and 27,000 in inventory to stock the store. The owner anticipates revenue of 83,000 the first year, 102,000 the second year and 109,000 the third year. Costs each year are 42,000. The firm is in a 25% tax bracket, and uses a 3 year MACRS table to depreciate assets. If the liquidation value of the firm is expected to be 82,000 (sell after 3 years of use) Depreciation Year 1 = 33%, Year 2 = 45 %, Year 3 = 15%, Year 4 = 7% 18 FIND the Initial Investment 19 20 Find the Net operating cash flow for year 1 NOCF year 2 = ? NOCF year 3 =? 21 22 Find the terminal cash flow