Initial Investment: $15,000 Salvage Value: $2,000 Yearly Revenue: $7,000 Yearly Expenses: $1,500 Annual Depreciation: $3,000 Project Life: 5 years Cost of Capital: 7.2% Tax rate: 25%

Yearly revenues grow at 4% per year and yearly expenses grow at 3% per year, working capital is increased from 0 to $1,000 in year 0, working capital is 15% of revenues in years 1-4, working capital is decreased to 0 in year 5. Now calculate the cash flows and NPV of the project.