21. What is the net present value of the flier project, which is a 3-year project where Dispersion would spread fliers all over Fairfax? The project would involve an initial investment in equipment of $230,000 today. To finance the project, Dispersion would borrow $230,000. The firm would receive $230,000 from the bank today and would pay the bank $290,000 in 3 years (consisting of an interest payment of $60,000 and a principal payment of $230,000). Cash flows from capital spending would be $0 in year 1, $0 in year 2, and $31,000 in year 3. Operating cash flows are expected to be $140,000 in year 1, $95,000 in year 2, and $30,000 in year 3. The cash flow effects from the change in net working capital are expected to be $8,000 at time 0; $21,000 in year 1; $12,000 in year 2, and $17,000 in year 3. The tax rate is 35 percent. The cost of capital is 7.12 percent and the interest rate on the loan would be 8.03 percent. PLEASE EXPLAIN HOW TO GET THESE NUMBERS ESPECIALLY THE ONES IN BOLD.

	Year
	0	1	2	3
OCF	0	140,000	95,000	-30,000
+ Cash flows from ΔNWC	-8,000	-21,000	12,000	17,000
+ CF from capital spending	-230,000	0	0	31,000
+ Terminal value	0	0	0	0
= Relevant CF	-238,000	119,000	107,000	18,000