Benford Inc. is planning to open a new sporting goods store in a suburban mall. Benford will lease the needed space in the mall, Equipment and fixtures for the store will cost $200,000 and be deprecated over a 5-year period on a straight-line basis to $0. The new store will require Benford to increase its net working capital by $175,000 at time 0. First-year sales are expected to be $1.6 million and to increase at an annual rate of 6 percent over the expected 10-year life of the store. Operating expenses (including lease payments and excluding depreciation) are projected to be $700,000 during the first year and increase at a 4 percent annual rate. The salvage value of the store's equipment and fixtures is anticipated to be $6,000 at the end of 10 years. Benford's marginal tax rate is 40 percent. Round your answers to the nearest dollar. a. Compute the net investment required for Benford. s 375,000 b. Compute the annual net cash flows for the 10-year projected life of the store. Year NCF 1 376,000 2 X $ 413,200 3 $ 454,132 4 $ 499,163 5 $ 548,694 6 $ 587,167 X 7 $ 647,064 X 8 $ 712,917 9 $ 785,306 10 $ 1,069,668 X c. Compute the annual net cash flows assuming equipment and fixtures are depreciated using the 7-year asset class under MACRS. Use Table 9A-3 to answer the question. Year NCF 1 X $ 371,432 Z $ 416,792 $ 452,124 4 $ 493, 155 5 X $ 539,838 6 $ 594,303 7 $ 654,208 8 $ 716,485 9 $ 785,306 10 $ 1,069,668