A company is considering a project that will cost $$130,000.$ The initial cost will be depreciated to zero over the project's $3$ year tax life, but has an estimated market value of $$30,000$ at the end of the project.

The project will generate annual cash revenues of $$88,000$ and have annual operating cost of $$53,000.$ An initial working capital investment of $$6,500$ will be released at the end of the project. The company's required return is $11\%$ and it has a $20\%$ tax rate.

What is the project's initial cash flow $(T_0)?$

What is the project's annual operating cash flow?

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

What is the project's NPV$?$