Consider the following 5-year project: Cost of equipment = $500,000 - Additional shipping and installation cost = $15,000 - 10-year class life, straight line depreciation to zero $20,000 in net working capital required at t=0. - (All of this increase in NWC is recovered in year 5) Revenues: $200,000 per year Operating costs: $15,000 per year Sell equipment at the end of year 5 for $300,000 Discount rate = 13%, marginal tax rate = 34%

1. Show Free CFs in: year 0, years 1-4, and year 5 2. Find NPV