In net present value analysis, the release of working capital at the end of a project should be: Multiple Choice 02:51:55 ignored included as a cash outflow. included as a cash inflow included as a tax deduction Nakama Corporation is considering investing in a project that would have a 4 year expected usefulife. The company would need to invest $280,000 in equipment that will have zero salvage value at the end of the project. Annual incremental sales would be $640,000 and annual cash operating expenses w one-time renovation expenses of $50,000. Working capital in the amount of $20,000 would be required. The working capital would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment The company's tax rate is 30%. ould be $480,000. In year 3 the company would have to incur 02:38:48) The income tax expense in year 2: Multiple Choice $48,000 $12000 2 Multiple Choice ot1 548300 $48,000 02:38:20 $12,000 $14,500 $27,000 hapter 1S Appenu A company anticipates incremental net income (.e, incremental taxable income) of $20,000 in year 3 of a project. The 3 company's tax rate is 30% and its after-tax discount rate is 8%. Click here to view Exhibit 138-1 to determine the appropriate discount factor(s) using table The present value of this future cash flow is closest to: 02:3751 Multiple Choice $6,000 $4763 $14,000