1.Ohio Building Products (OBP) is considering the launch of a new product that would require an initial investment in equipment of $30,800 and investment in working capital of $1,000. The forecast profits from the product are as follows: cash flow in Working capital year 1:13800T6760 2:16942+ 335 = 3032 Year 1 Year 2 + current assets Net revenues 23.337 22,152 - Curignt liabihtes Depreciation 13,860 16,940 Pretax profit 9,477 5,212 Tax at 35% 3,317 Net profit JP-(IXY) No cash flows are forecast after year 2, and the equipment will have salvage value of $800. The salvage value is equal to cash flow on disposal of equipment at the end of year 2. The cost of capital is 10% a. Calculate the expected EVA and the return on investment in each of years 1 and 22 Calculate the present value of the economic value added. How does this figure compare with the project 1,824 3,388 NPV. 10% 2. Consider an asset with the following cash flows: year Year 1 Year 2 Year 3 Cash Flow 13 5.2 4.8 4.4 cost capital The investment in equipment is $13 million and the salvage value is $1. Because the cash flow on disposal of equipment is $0 and that is to say that the loss on disposal of equipment will happen at the end of year 3, The firm uses straight-line depreciation. Thus, for this project fit writes or $4 million per year in years 1, 2, and same a. Calculate economic depreciation and book depreciation. b. Calculate the project's book profitability. . Please explain what obligations should CFO be doing? - Please explain what CSR is