he Fleming Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 24 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.

Year 0 Year 1 Year 2 Year 3 Year 4

Investment $ 43,000

Sales revenue $ 22,000 $ 22,500 $ 23,000 $ 20,000

Operating costs 4,600 4,700 4,800 4,000

Depreciation 10,750 10,750 10,750 10,750

Net working capital spending 490 540 590 490 ?

a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.)

year1

year2

year3

year4

b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

year0

year1

year2

year3

year4

c. Suppose the appropriate discount rate is 11 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

npv=?