Please answer the second question based off the information given in the first question.

Answer the next four questions based on the following informtion. A proposed new project will last for 4 years and requires the purchase of a new machine. The current price of the machine is $300,000, and the machine can be sold for $8,000 by the end of year 4. The machine falls in the MACRS 3-year depreciation class. The associated percentages for different depreciation classes are provided in the following table. year 3-year 5-year 7-year 33.33% 20.00% 14.29% 2 44.45% 32.00% 24.49% 3 14.81% 19.20% 17.49% 4 7 .41% 11.52% 12.49% 11.52% 8.93% 5.76% 8.92% 8.93% 4.46% Relative to the current inventory level, the inventory requirement for this project is: vrl yr2 yr3 yr4 $10,000 $10,000 $12,000 $12,000 The project has projected annual sales of $450,000. Variable costs are 40% of sales, and fixed costs are $100,000 annually. The marginal tax rate is 40%. The discount rate is 9% What are the cash flows related to net capital spending for this project? 0 $300,000 at time 0 only. 0 $300,000 at time 0 and $8,000 at the end of year 4. 0-$300,000 at time 0 and $8,000 at the end of year 4. -$300,000 at time 0 and $4,800 at the end of year 4. 0-$300,000 at time 0 and -$4,800 at the end of year 4. What are the cash flows related to change in net working capital? 0 $10,000 cash outflow at time 0 and the end of year 1, and $12,000 cash outflow at the end of year 2 and year 0 $10,000 cash outflow at time 0 and $2,000 cash outflow at the end of year 2. 0 $10,000 cash outflow at time 0, $2,000 cash outflow at the end of year 2, and $12,000 cash inflow at the end of year 4. $10,000 cash inflow at time 0, $2,000 cash inflow at the end of year 2, and $12,000 cash outflow at the end of year4. 0 $10,000 cash inflow at time 0 and $12,000 cash outflow at the end of year 4