Buffalo bovine construction:

facility construction: $22M

NWC:$1M

NWC will be recovered at project end

Anticipated sales: 18M/year

COGS: $7M/year

Fixed operating expenses: $2M/year

project lifespan: 5 years

Salvage value at end of life: $4m

marginal tax rate:35%

WACC: 10%

What is the after tax salvage value in year 5?

What is the total cash flow for the initial year of the facility project?

What is the operating cash flow for year 2 for the facility project?

what is the net presrnt value of thr facility project?

what is the initial rate of return of the facility project?