BestToys is building a plant to make fake aquariums for 1-year-olds. In its first

year of operation (year 1), the aquarium project creates working capital needs of

$6M. From years 1 to 4, these needs are expected to increase by 5%. After five

years, the plant will be closed and the working capital recovered. In undertaking

a capital budgeting exercise to see whether or not to build the plant, what are the

cash flows that should be included to take account of the working capital?