Consider the following project being evaluated by your company: - The initial price of the assets is $250,000 and will require $20,000 transportation and $5,000 installation. - Will be depreciated S/L over 7 years to zero salvage. - Market value for the asset at end of 5 years is expected to be $40,000 (the asset will be operated for only 5 years) - Net investment in NWC in year 0 (at the initial period) of $35,000 - Sales, in the first year, are expected to be generated by the project $170,000. - Annual cost of goods sold 75% of sales. - Annual sales growth rate 3\% - Marginal tax rate 30% - Cost of capital 10% 1) Calculate the depreciable base for the asset. 2) Calculate the project's cash outflow in year 0 (Initial outlay) 3) Calculate Annual operating cash flows for year 1-5 (OCF) 4) Calculate the asset's after-tax salvage in year 5 . 5) Calculate the project's net present value (NPV) and internal rate of return (IRR)