1. Consider the following information regarding Ariadne Fiberworks and the planned acquisition of a new weaving loom. The loom will cost 145,000 and will be fully depreciated over 10 years using straight-line depreciation. Operating cash flows in year 1 are anticipated to be 27,500 and will grow at 3% per year thereafter, and the initial investment in net working capital of 15,000 will be maintained throughout the life of the project. Assuming a 10-year life, the anticipated incremental cash flows in year 10 at the end of the project are: