2. XYZ Private Limited is considering purchasing a piece of machincry at $40,000. It will be depreciated over 4 years with no salvage value. The firm will adopt the straight-line depreciation method. The firm believes it can sell the machinery for $4,000 at the end of 4 yean. The firm will require an increased investment in net working copital (NWC) of S30,000. The firm's tax rate is 205. Over the next four yean, the firm's projected revenues are $100.600 per year, while its projected conts afe $90,000 per year. (a) Calculate the "Initial tnvestment" required. (b) What is the doprecietion anweunt per year for the machinery? (e) Culculate the roperating Ciesh flaws" (OCF) over the next four years. (d) What is the "Ciain on Sale" for the sale of the machinery at the end of four yeare? (c) Calculate the "Terminal Cash Flow" (i) Asuming a disceont rate of 5%, find the Net Present Value (NPV) of this project. Should the firte arcept or foject die project? Why