5-7. Your firm is considering investing in a project costs by $56,000 annually. The equipment costs $183,000, had a 4-year life (will be depreciated as a 3-year MACRS asset: 33% for the.. 1st year, 45% for the 2nd year, and 15% for the 3rd year), requires $8,000 initial cost in net working capital, and has a before-tax salvage value of $23,000. The discount rate is 10%. Tax is rate is 21%.

What's the OCF in year 1?

What's the Depreciation in year 2?

What's the NPV? Accept or Reject?