oly Wk 3 Quiz (due Day 7 6 Saved Revenues generated by a new fad product are forecast as follows: Year Revenues $50,00 40,000 20, eee 10,000 e Thereafter Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $40.000 in plant and equipment Required: .. What is the initial investment in the product? Remember working capital b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm's rate is 30%, what are the project cash flows in each year? Assume the plant and equipment are worthless at the end of 4 years c. If the opportunity cost of capital is 12%, what is the project's NPV? d. What is project IRR? Complete this question by entering your answers in the tabs below. Reg A ReqB Reg C and D What is the initial investment in the product? Remember working capital Initial investment Req8 >