3 Revenues generated by a new fad product are forecast as follows: 10 points Year 1 2 3 Revenues $60,000 30,000 20,000 10,000 Thereafter eBook Print Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 10% of revenues in the following year. The product requires an immediate Investment of $54,000 in plant and equipment Required: a. What is the initial Investment in the product? Remember working capital b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm's tax rate is 20%, what are the project cash flows in each year? Assume the plant and equipment are worthless at the end of 4 years. c. If the opportunity cost of capital is 10%, what is the project's NPV? d. What is project IRR? References Complete this question by entering your answers in the tabs below. Rega Reg Reg C and D What is the initial investment in the product? Remember working capital. Initial investment Reqs > Complete this question by entering your answers in the tabs below. Req A ReqB ReqC and D if the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm's tax rate is 20%, what are the project cash flows in each year? Assume the plant and equipment are worthless at the end of 4 years. (Do not round Intermediate calculations.) Cash Flow Year 1 2 3 4 Complete this question by entering your answers in the tabs below. Req A ReqB Red C and D c. If the opportunity cost of capital is 10%, what is the project's NPV? (A negative value should be indicated by a minus sign Do not round intermediate calculations. Round your answer to 2 decimal places.) d. What is project IRR? (Do not round intermediate calculations, Enter your answer as a percent rounded to 2 decimal places.) C NPV d. IRR % (RedB