4 VeganBites would like to produce a new range of vegan cheeses. They have spent $50,000 so far researching the idea. The equipment costs $250,000, and an additional $90,000 is needed to install it. Other information: Vegan Bites will have to increase the overdraft by $120,000 (at 15% pa interest) to fund it. Net working capital will be 20% of first year revenue. The equipment will be depreciated straight-line to zero over a 5-year life. Sales of the new cheese line is expected be $188,000 per year, and additional annual cash operating expenses of $83,000. The equipment will be sold for $100,000 after 5 years. The company tax rate is 30 per cent, and tax is paid in the year of income. The company's cost of capital is 8 per cent. REQUIRED: (a) Estimate the initial investment outlay of the project. (2 marks) (b) Estimate the annual after-tax operating cash flow of the project for year 1-4. (2 marks)