Bernard 1 Corp is considering a new project. Details: Project will require $400,000 for new fixed assets Project requires $100,000 of additional net working capital. Project has a 4 year life. Fixed assets will be depreciated straight-line to zero book value over the life of the project. At the end of the project, the fixed assets can be sold for $50,000 Net working capital is returned at the end of the project. Project is expected to generate annual sales of $500,000. Sum of fixed and variable costs (combined) is $300,000 annually. Tax rate is 30 percent.

a) What is the project's initial cash outflow? b) What is the amount of EBIT in year 4? c) What is the operating cash flow in year 4? d) What is the amount of after-tax cash flow from the sale of the fixed assets? e) What is the total cash flow in year 4?