A project will produce sales revenue of $100,000 per year for four years starting t=1. The operating expenses total $50,000 per year. To support the project, net working capital of $10,000 is needed immediately at t=0 and will be recovered in full at t=4. No additional net working capital is needed at t=1,2,3 and 4 . The project requires an initial investment of $80,000 for the purchase of equipment, and this will be depreciated straight-line to zero over the project's life. The equipment has a salvage value of $20,000 at the end. The required return is 15% and the tax rate is 20%. a. What is the initial cash flow? b. What is the cash flow in years 1,2 and 3 ? c. What is the cash flow in year 4 ? d. What are the payback, discounted payback, NPV, IRR and PI