A proposed three-year project will require $589,000 for fixed assets, $79,000 for inventory, and $43,000 for accounts receivable. Accounts payable are expected to increase by $47,000. The fixed assets will be depreciated straight-line to a zero book value over five years. At the end of the project, the fixed assets can be sold for $225,000. The operating cash flow per year is $67,900. The tax rate is 21 percent and the discount rate is 12 percent.

What is the cash flow associated with net working capital for this project at time 0? Is it cash inflow or cash outflow?

What is the aftertax salvage value of the fixed assets after three years? In other words, what is the aftertax cash flow from selling the fixed asset after three years?

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