6500 You are considering a 4 year project that requires upfront investment in a piece of production machinery to serve increased market demand for protective gear. The initial equipment investment is $200 and it is deprecated straight line to 20% of its initial cost by the end of the project in year , Product revenues from the sale of the year are forecasted below, and project operating costs should be bow of sales. Year 1 Project Sales (5) 5500 8000 10000 The project will also requiresco in net working capital investment to start, and a further $200 in networking capital investment will take place in year 1. The projects networking capital will be reduced to zero at the end of the project In four years, the equipment will be sold at the salvage value which is 20% of its initial cost. The relevant tax rate is 30%, and the required return 0 1340 Use the above information to answer the following questions a) What is the project cash OUTFLOW at time zero. Include all contributions. DO NOT enter your answer with a negative sign, b) What is the forecasted operating cash flow (OCF) in year 2? c) What is the forecasted Total Project Cash Flow in year dy Using the relevant discount rate given above what is your estimate for the NPV of the project? Enter your answer to two decimal places without an and do not use a comma 42 e) Should the project be accepted? (inter Yes or NO) 10 AM