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chp 10 4. Assume the following: Year Zero: Capital Investment = $4M and Increase in NWC = $.2M; Years 1 3: OCF = $3M; Year

chp 10

4. Assume the following: Year Zero: Capital Investment = $4M and Increase in NWC = $.2M; Years 1 3: OCF = $3M; Year 3: Recovery of Earlier Increase in NWC and in addition Cash Flow from Salvage = $3M. What are the incremental cash flows for this project for years zero through 3?

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