\begin{tabular}{|r|l|r|r|} \hline 3 & Below are your numerical inputs for the problem: \\ \hline 4 & Initial Cost (\$) & 390000 \\ \hline 5 & Year 1 Revenues (\$) & 192000 \\ \hline 6 & Year 1 Costs (\$) & 125000 \\ \hline 7 & Inflation & 2.75% \\ \hline 8 & Project Duration (years) & 6 \\ \hline 9 & Depreciation Method & \\ \hline 10 & Tax Rate & \\ \hline 11 & Net Working Capital (\% oft+1 Revenues) & MACRS \\ \hline 12 & Salvage Value (\$) & 28.00% \\ \hline 13 & Cost of Capital & 15.00% & 245000 \\ \hline \end{tabular} How much are the year 1 operating cash flows (OCF)? How much is the depreciation expense in year 3 ? What is the change in Net Working Capital (NWC) in year 2? What is the net cash flow from salvage (aka, the after-tax salvage value, or ATSV)? What is the project's NPV? Would you recommend purchasing the ranch? Briefly explain. \begin{tabular}{|r|l|r|r|} \hline 3 & Below are your numerical inputs for the problem: \\ \hline 4 & Initial Cost (\$) & 390000 \\ \hline 5 & Year 1 Revenues (\$) & 192000 \\ \hline 6 & Year 1 Costs (\$) & 125000 \\ \hline 7 & Inflation & 2.75% \\ \hline 8 & Project Duration (years) & 6 \\ \hline 9 & Depreciation Method & \\ \hline 10 & Tax Rate & \\ \hline 11 & Net Working Capital (\% oft+1 Revenues) & MACRS \\ \hline 12 & Salvage Value (\$) & 28.00% \\ \hline 13 & Cost of Capital & 15.00% & 245000 \\ \hline \end{tabular} How much are the year 1 operating cash flows (OCF)? How much is the depreciation expense in year 3 ? What is the change in Net Working Capital (NWC) in year 2? What is the net cash flow from salvage (aka, the after-tax salvage value, or ATSV)? What is the project's NPV? Would you recommend purchasing the ranch? Briefly explain