A company is considering a project that will cost $560,000. The initial cost will be depreciated to zero over the project's 7 year tax life, but has an estimated market value of $50,000 at the end of each project. The project will generate annual cash revenues of $197,000 and have annual operating cost of $115,000. An initial working capital investment of $10,100 will be released at the end of the project. The company's required return is 10% and it has a 20% tax rate.

What is the project's initial cash flow (T = 0)?

What is the project's annual operating cashflow?

What is the net cash flow in the final year of the project?

What is the project NPV?