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A 4-year project requires increases of $975,000 in fixed assets, $195,000 in inventory, $70,000 in accounts receivable, and $200,000 in accounts payable. Fixed assets are

A 4-year project requires increases of $975,000 in fixed assets, $195,000 in inventory, $70,000 in accounts receivable, and $200,000 in accounts payable. Fixed assets are depreciated straight-line to zero over 10 years and sold at the end of the project for $700,000. Net working capital will return to pre- project levels. The projects operating cash flow = $85,000/yr Tax rate = 30%; cost of capital = 15%. What is the CFFA in the final year of the project (e.g. year-4)? (7 pts)

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