in sink corporation has decided to look at a new automated section of manufacturing equipment. in sink spent $5000 on a study that researched the various models of the equipment and the company decided on the model that will have an installed cost of $36,000.

the equipment will be depreciated straight line to zero over its 5 year life at the end of which, parts of the equipment can be sold for $35,000. the equipment will save the firm $80,000 per year in pretax operating costs and the system requires an initial investment in net working capital of $14,500. assume tax rate is 35% and the relevant discount rate is 12%.

what is the total amount of the cash flow in year 0? is it negative or positive?

what is the amount of annual depreciation?

what is the amount of OCF?

what is the after tax salvage value?

what is the total amount of the cash flow in year 5?

what is the npv for this projec?