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6. The Zackman Company is considering a new Investment. Financial projections for the investment are tabulated below. The corporation tax rate is 35 percent. Assume

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6. The Zackman Company is considering a new Investment. Financial projections for the investment are tabulated below. The corporation tax rate is 35 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the year. All net working capital is recovered at the end of the project. Year 1 Year 2 Year 3 Year 4 Year 0 $30,000 5 2 Investment Sales revenue Operating costs Depreciation Net working capital spending $14,000 ,100 7,5002 5 160 $15,600 2,100 7,500 30 $15,500 2,100 7,500 270 $12,700 2,100 7,500 | 450 2 a. Compute the incremental net income of the investment for each year b. Compute the incremental cash flows of the investment for each year c. Suppose the appropriate discount rate is 13 percent. What is the NPV of the project

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