3COhpVGUS9YuglF-UOB IpGg0WxE9WbFZ1gpbathread.tacv27thre... to ferences Review View Help Tell me what you want to do Editing AAB TUA Av. A TE VINY b) Revenue generated by a company product in each of the next five years are forecast as follows: (10 Marks) I Year Revenues 1 $40,000 2 $30,000 3 $20,000 4 $10,000 Thereafter SO Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate of $50,000 in plant and equipment. a) What is the initial Investment in the product? 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 40%, what are the project cash flows in each year? c) If the opportunity cost of capital is 10% what is project NPV? d) What is project IRR? lictions on o BA G W TE 18C . 5 6 7 8 9 0 wa T T H J. K L ? B N M . Carl