a. 2. A watch manufacturer is considering a capital expenditure project involving purchasing and installing new equipment. The equipe for delivery, and installation is estimated to be $5,000. The equipment has an expected life of 8 years, and an estimated salvage valu working capital investment of $5,000. The project revenues are forecasted to be $20,000 per year and cash expenses are estimated at rate and a 10% weighted average cost of capital (WACC) Calculate the annual net cash flows from this project, assuming simplifiec $7,375 per year b. $6,937.50 per year $5,462.96 per year od 54,966,33 per year None of the listed items is correct . e. PON considering a capital expenditure project involving purchasing and installing new equipment. The equipment cost will be $12,000, with an additional 53.000 en is estimated to be $5,000. The equipment has an expected life of 8 years, and an estimated salvate value of $10,000. The project requires an additional of $5,000. The project revenues are forecasted to be $20,000 per year and cash expenses are estimated at $10,000 per year. The firm has a 35% marginal tax erage cost of capital (WACC). Calculate the annual net cash flows from this project, assuming simplified straight-line depreciation is correct vill save this response. Question 22 of 25