answers?

1. [10 pts) Epek Hobbs, Inc. is exdering the abilities of as maintenance services division. Opening the division will require a new building staff anders. The proposed plan involves purchasing land that is currently selling for $300,000. The price of contracting the building on this land is $1.5 million and should be finished before operations begin in your 1. The building will be deprecated straight-line to a book value of zero over 10 years New equipment will cost $200.000 upfront and will be depreciated straight line to nero over & years. An HR team will need to be brought for liring new tall. They estimate that the upfront cost of hiring will be $80,000. In addition, a sales forecast has already been formed for the project and the incurred fee for this service is $130,000. The team forecasts sales of $100,000 $800.000 $600,000, and $300,000 for years through 4 respectively. Operating costs are estimated to be $300.000 each year. At the end of year 4. the division is expected to be shut down due to industry competition. At this time, the building will be repurposed, although analysts estimate that the land will hold a market value of $300,000 and the building will hold a market value of $750.000. The equipment is expected to build to salvage value by the end of year 4. EAH's tax rate is 20% Calculate the annual net cash flows for each year for this project. Use the following worlosteet to write out each cash flow. This worksheet is provided to help you organised your work in an orderly manner - you may wish to write out your solution ou catch paper before transferring your final answer to this sheet Year Year 1 Year 2 Year 3 Year 4 Net Cash Flow 1. [10 pts) Epek Hobbs, Inc. is exdering the abilities of as maintenance services division. Opening the division will require a new building staff anders. The proposed plan involves purchasing land that is currently selling for $300,000. The price of contracting the building on this land is $1.5 million and should be finished before operations begin in your 1. The building will be deprecated straight-line to a book value of zero over 10 years New equipment will cost $200.000 upfront and will be depreciated straight line to nero over & years. An HR team will need to be brought for liring new tall. They estimate that the upfront cost of hiring will be $80,000. In addition, a sales forecast has already been formed for the project and the incurred fee for this service is $130,000. The team forecasts sales of $100,000 $800.000 $600,000, and $300,000 for years through 4 respectively. Operating costs are estimated to be $300.000 each year. At the end of year 4. the division is expected to be shut down due to industry competition. At this time, the building will be repurposed, although analysts estimate that the land will hold a market value of $300,000 and the building will hold a market value of $750.000. The equipment is expected to build to salvage value by the end of year 4. EAH's tax rate is 20% Calculate the annual net cash flows for each year for this project. Use the following worlosteet to write out each cash flow. This worksheet is provided to help you organised your work in an orderly manner - you may wish to write out your solution ou catch paper before transferring your final answer to this sheet Year Year 1 Year 2 Year 3 Year 4 Net Cash Flow