Manchester Films Manchester Films is considering some new equipment whose data are shown below. The equipment has a 3-year tax life and would be fully depreciated by the straight-line method over 3 years, but it would have a positive pre-tax salvage value at the end of Year 3, when the project would be closed down. Also, some new working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's 3-year life. Project cost of capital (1) Net investment in fixed assets (depreciable basis) Required new working capital Straight-line deprec. rate Sales revenues, each year Operating costs (excl. deprec.), each year Expected pretax salvage value Tax rate 10.0% $81,000 $10,000 33.333% S77.000 $35.000 $5,000 35.0% Provide answers to the following questions about Manchester Films: 11. What is the project's initial investment outlay? a. S77,000 b. $81.000 c. $91,000 d. $100,000 12. What is the project's operating cash flows from Year 1 to Year a. $36,750 b. $37,500 c. $33,450 d. S32,785 13. What is the project's NPV? a $10,245 b. $10,347 c. $11,005 d. $12,155 e. $12,363