1)what is the additional (non operating) cash flownin year 3 (termination cash flow including the recovery of NWC)?

2)what are the net operafing cash flows in year 1 ?

3) what is the year-0 net cash flow (including net working capital investments)?

You have been asked by the president of your own company to evaluate the proposed acquisition of a new chromatograph for the firm's R\&D department. The equipment's basic price is $70,000, and it would cost another $15,000 to modify it for special use by your firm. The Chromatograph, which falls into the MACRS 3 -year class (MACRS schedule: year 10.333, year 20.445, year 30.148 ), would be sold after 3 year for $30,000. Use of the equipment would require an increase in net working capital (NWC) of $4,000 only once at the beginning. The chromatograph would have incurred before tax operating costs of 3,000 , but it is expected to increase the revenue by $28,000 per year. The firm's marginal tax rate is 40%