Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 10% of revenues in the following year. The product requires an immediate investment of $50,000 in plant and equipment.

a.	What is the initial investment in the product? Remember working capital.

Initial investment

$

b.

If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firms tax rate is 30%, what are the project cash flows in each year?(Enter your answers in thousands of dollars. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Year	Cash Flow
1	$
2
3
4

c.	If the opportunity cost of capital is 12%, what is project NPV?(Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

NPV

$

d.	What is project IRR?(Do not round intermediate calculations. Round your answer to 2 decimal places.)