as well. The Furniture Parts division currenttvr generates cash revenues of $4,?[lt] and incurs caslr costs of $3,Illl,Dl], with an investment in assets of $1 L. Doe-quarter of the cash costs are direct labour. The manager estimates that the expansion of the hu sin ess will require an investment in working capitat of $45,900. Because the companvr alreadv has a tacil'rtv, there would he no additional rent or purchase costs for a huilding, but the projectwoutd generate an additional $39G,\" in annual cash overhead. Moreover,the manager expects annual materials cash costs for tricvcle parts to be $1,?ll,l}[ltl, and tahour for the bicvcte parts to he ahout the same as the labour cash costs for furniture parts. The Controller of Metll, working with various managers, estimates thatthe expansion would require the purchase of equipment with a $5,llt),l]t} cost and an expected disposal value of WWI} at the end of its l-vear useful lite. Depreciation would occur on a straight-line hasis. The CPU of MetAlt determines the rm's cost of capital as t2'lt3. The [lF's saiarv is mm per vear. Adding another division will not change that. The EEG asks for a report on expected revenue for the project, and is totd hv the marketing department that it might he ahte to achieve cash revenue of $3,150,060 annuailv from bicvcte parts. Met-Ali Manufacturing has a tax rate o13%. Required 1. Separate the cash ows into four groups: {1} net initial investment cash ttows, {1} cash ftows from operations, [3! cash ows from terminat disposal of investment, and [41 cash ows not relevant to the capital hudgeting problem. 2. Calculate the NW of the expansion project and comment on vour analvsis