8. The estimation of a project's net investment and net annual cash flows Consider the case of Collins Construction Co.: Collins Construction Co. currently earns annual revenues of $900,000 and incurs total operating expenses (excluding depreciation and interest expense) of 42.50% of revenues. Its earnings are taxed at a rate of 40%. Today, its budgeting committee is evaluating the purchase of a new forklift. The forklift is expected to cost $80,000, plus $4,000 in freight and setup expenses, and will be depreciated using straight-line depreciation. It is expected that the forklift will have a useful life of ten years and a salvage value equal to 25.00% of its purchase price of $80,000. It is expected that the forklift will be sold for its book value, such that no capital gain or loss will be realized. It is further expected that the forklift will cause a 30.00% increase in the firm's annual sales and total operating expenses (excluding depreciation and interest expense). If the forklift is purchased, the firm will require an additional $10,000 in net working capital (NWC). Given this information, complete the following analysis: Answer Question What is the annual depreciation expense for the forklift? What is the net investment (NINV) of the investment? What are the net annual operating after-tax cash flows associated with this project? What is the project's last year (terminal) cash flow