JECO company is planning to build a new plant in Batangas City. The plant is expected to provide additional sales as follows:

First Year P $2\mathrm{.}0$ million

Second Year P $2\mathrm{.}5$ million

Third Year P $3\mathrm{.}0$ million $($maximum capacity$)$

The financial manager of JECO estimates that for every peso of sales, P$0\mathrm{.}25$ must be invested in current assets. If all discounts are taken and bills are paid on time, accounts payable average P $0\mathrm{.}04$ per peso of sales. Other current liabilities, such as wages payable, typically average P$0\mathrm{.}05$ per peso of sales.

Required:

a$.$ Estimate the working capital investments required for the new plant in the $1$st$,2$nd & $3$rd year of operations.

b$.$ How do these requirements affect the associated cash flows and the viability of the project?