Manigault Industries is considering an expansion project. The proposed project would have a 4-year life along with the following features: The necessary equipment is priced at $90,000 The engineers require a cost of $3,000 to install the equipment The equipment will be depreciated over 4 years using the following depreciation rates: 33% (year 1), 45% (year 2), 15% (year 3) and 7% (year 4) If the project is undertaken, at t = 0 the company will need to increase its inventories by $50,000 and its accounts payable will rise by $30,000. The company will realize an additional $500,000 in sales over each of the next four years. The companys operating costs (excluding depreciation) will equal $200,000 a year. The companys tax rate is 40%. At t = 4, the equipment will be sold for $30,000. The weighted average cost of capital WACC is 10%. Use the above information to solve the below questions.

1- Calculate the change in Net Working Capital (NWC) *

$50,000

$30,000

$80,000

$20,000

None of the above

2- Calculate the Fixed Capital Investment (FCI) value *

$93,000

$113,000

$200,000

$500,000

None of the above

3- Calculate the Initial Cash Flow value *

$113,000

$45,200

$30,000

$118,000

None of the above

4- Calculate the Cash Flow for 1st year *

$500,000

$200,000

$161,568

$192,276

None of the above

5- Calculate the Cash Flow for the 2nd year *

$196,740

$154,890

$200,000

$30,000

None of the above

6- Calculate the Cash Flow for the 3rd year *

$286,000

$20,000

$185,580

$200,000

None of the above

7- Calculate the Cash Flow for the 4th year *

$182,604

$185,000

$176,094

$117,396

None of the above

8- Calculate the Book Value of the equipment at termination *

$30,050

$10,500

$6,510

$0

None of the above

9- Calculate the Termination Value (TV) *

$38,000

$61,050

$45,485

$35,636

None of the above

10- Calculate the NPV value *

$514,496

$272,500

- $296,235

-$300,250

None of the above