I can't figure out the year 4 NWC as well as the NPV

2 Problem 6-2 Calculating Project NPV 20 points The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. 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. 8 01:19:06 Year 1 Year 2 Year 3 Year 4 eBook Year o $27,200 References Investment Sales revenue Operating costs Depreciation Net working capital spending $ 14,300 $ 15,900 $ 17,300 $ 13,800 3,350 3,325 5,100 3,700 6,800 6,800 6,800 6,800 245 315 195 ? 345 a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) Year 3 Year 1 3,154 $ Year 2 4,389 $ Year 4 2,508 Net income $ 4,104 $ 2 b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative amount should be indicated by a minus sign.) 20 points 8 01:18:57 Year o Year 2 Year 4 Year 1 9,709 $ Year 3 10,709 Cash flow $ -27,545 $ 10,874 $ eBook References c. Suppose the appropriate discount rate is 9 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