4. Dinesh Vaswami of the Dutch League Importing Company is considering a project that will require an initial outlay of $1,250,000 for a freighter plus $500,000 working capital. The freighter will be depreciated (straight-line) to salvage value of $250,000 in 10 years. This project is expected to produce sales of $850,000 and require expenses of $425,000 annually for the next 10 years. Dutch League Importing has a marginal tax rate of 25%. a. Calculate the incremental cash flow from operations for this project. Calculate the NPV of this project for the following discount rates: 6%, 8%, 10%, 12%, 14%, and 16% Draw a graph with the NPV on the vertical axis and the discount rate on the horizontal axis. Where will the NPV curve cross the horizontal axis? Is there any Special significance to the point at which the graph crosses the horizontal axis? b. Cost Of Freighter Salvage Value Life Depreciation Revenue Expenses Working Capitol Tax Rate One Time CF Revenge Expenses Dep Taxes After Tax CF Year 0 1 2 3 4 5 6 7 3 9 10 IRR Rate NPV 0.01 0.02 0.00 0.04 0.03 0.05 0.07 0.08 0.09 0.10 0.11 0.12 0.13 0.14 0.15 0.16 0.17 0.18 0.19 0.20 0.21 0.22 0.23 0.24 0.25 0.26 0.27 0.28 0.29 0.30