Mahendra & Mahendra, an India conglomerate is investing $10,000 to buy an equipment. The equipment will last five years and will depreciate straight line. The firm hopes to generate revenue of $14,000 every year with an EBIT margin of 40%. The firm would need NWC investment equal to 10% of annual revenue. Estimate the FCF for the project for year 1 year 3 year 4 year 2 and year 5 In the above problem, if the firm hopes to sell the equipment for $2,000 at the end of five years and faces a tax rate of 35%, what is the after-tax salvage value? Revenue EBIT Depreciation NWC 0 1 2 3 4 5 Capex 10000 14000 14000 14000 14000 14000 5600 5600 5600 5600 5600 2000 2000 2000 2000 2000 1400 1400 1400 1400 1400 Gopalan Inc plans a project that will generate revenues of 8.13 million. The COGS are expected to be 60% of revenue. The firm offers 90 days credit to its customers and in turn gets 45 days credit from its suppliers. The firm follows just in time inventory policy and hence only uses 5 days of inventory in its operations. Calculate the amount of NWC the firm will need? Assume 360 days. Answers must be rounded up to two decimal places.