Atlantic Manufacturing is considering a new investment project that will last for four years. The delivered and installed cost of the machine needed for the project is $23,957 and it will be depreciated according to the three-year MACRS schedule. The project also requires an initial increase in net working capital of $300. Financial projections for sales and costs are in the table below. In addition, since sales are expected to fluctuate, NWC requirements will also fluctuate. The end-of-year NWC requirements are included below (note: these NWC capital requirements DO NOT represent the change in NWC for the period). The $0 requirement for NWC at the end of year 4 means that all NWC is recovered by the end of the project. The corporate tax rate is 35% and the required return on the project is 12%.

\begin{tabular}{|l|l|l|l|l|} \hline Year & 1 & 2 & 3 & 4 \\ \hline Sales & $11,653 & $12,746 & $13,973 & $10,638 \\ \hline Costs & 2,322 & 2,536 & 3,456 & 1,434 \\ \hline NWC Requirements & 324 & 352 & 231 & 0 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|} \hline Year & 1 & 2 & 3 & 4 \\ \hline Sales & $11,653 & $12,746 & $13,973 & $10,638 \\ \hline Costs & 2,322 & 2,536 & 3,456 & 1,434 \\ \hline NWC Requirements & 324 & 352 & 231 & 0 \\ \hline \end{tabular}