2. A watch manufacturer is considering a capital expenditure project involving purchasing and insa and installation is estimated to be $5,000. The equipment has an expected life of 8 years, and an es $5,000. The project revenues are forecasted to be $20,000 per year and cash expenses are estimated capital (WACC). Calculate the annual net cash flows from this project. b $7,375 per year $6,937.50 per year $5,462.96 per year 54,966,33 per year None of the listed items is correct e ving purchasing and installing new equipment. The equipment cost will be $12,000, with an additional $3,000 for delivery, life of 8 years, and an estimated salvage value of $10,000. The project requires an additional working capital investment of sh expenses are estimated at $10,000 per year. The firm has a 35% marginal tax rate and a 10% weighted average cost of