a firm is considering a capital expenditure project involving purchasing and installing new equipment. the equipment cost will be $15000 with an additional $1000 for delivery, and installation is estimated to be $3000. the equipment has an expected life of 5 years and an estimated salvage value of $3000. the project requires an additional working capital investment of $7,000. The project revenues are forecasted to be $20,000 per year and cash expenses are estimated at $5,000 per year. the firm has a 40% marginal tax rate and an 8% weighted average cost of capital. calculate the annual net cash flows from this project

are forecasted to be $20,000 per Calculate the annual net cash flows from this pro) b. Oa. $10,520 per year . $10,280 per year O $9,740.74 per year $6,957.67 per year d. Ce None of the listed items is correct