1. Compute the total cash flow in year 4 of a 4-year project with the following assumptions:

• Annual operating cash flow of $65,000.
• Upfront requirement of $6,000 in NWC, recoverable when the project ends.
• $40,700 investment in equipment to start the project. This equipment has a book value of $18,000 at the end of Year 4 and can be sold for $19,000
• The tax rate is 21%