need answer to question 6 please

3. Viking Industries is considering a new three-year expansion project that requires the purchase of a machine for $2.32 million. The project will generate $1.735 million in annual sales, with annual costs of $650,000. The machine will be deprecated straight line to zeto over its three-year tax life (the tax rate is 21%), after which time it will be worthless What is the OCF for this project OCE = (Sales -cost) & C1-tax rare + depriciarien tax shied Depriciurn tax Shield 232000013 = 773333 (C1735000 - 650000)*(1-0.213) +0.21*773333) = So ock 4. In the previous problem, suppose the required retum on the project is 12 percent. What is the project's NPV? In BAI Plus, CFO = -2320000 Co I = 1014550 Co2 = 1019550 CO3 = 1019550 Gopt nou - NPu= 128787. 6. In the previous problem, suppose the project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $180,000 at the end of the project. What is the project's Year 0 net cash flow? Year 12 Year 2 Year 3? What is the new NPV? CFO = -2320000 25000 2-2570000 CF 1 = 1019550 (F2 = 10lasso CF3 = Oct & aster tux Salvage & Recovery of w = 1014 SSO 180000*0.79) +250 000 -14150 CPT NPU NpU= 157947 2827 Page 2 6. In the previous problem, suppose the fixed asset actually falls into the three-year MACRS class. All the other facts are the same. What is the project's Year 1 net cash flow now? Year 22 Year 3? What is the new NPV