Please verify one finance question in the attached document.

Question 4 A firm is considering an investment in a project with a life of 5 years. The initial investment consists of $200,000 in plant and equipment and $50,000 in working capital. The project is expected to generate revenues of $300,000 a year with a gross margin of 50%. Assume that the fixed expenses consist of depreciation (use straight line to zero as your method) and SGA of $25,000. Taxes are 30%. Salvage (recovery of the investment in plant and equipment) is $40,000. The discount rate is 10%. Please fill in the following table. 0 Net Income (NOPAT) Operating CF Investing CF (TOTAL) CF NPV 1 65,100 2 65,100 3 65,100 4 65,100 5 65,100 97,100 97,100 97,100 97,100 97,100 (250,000) 399,130.6 50,000 88,272.6 80,248.3 72,952.2 66,320.2 91,337.3 4 97,100 5 97,100 50,000 0.62092 91,337.3 149,130.6 [You may show your calculations on this page.] Net Income: Revenue Gross Margin Less: Depreciation SGA Net Margin Before Tax Less: Tax Net Margin After Tax Add: Depreciation Operating Cash Flow 300,000 150,000 32,000 25,000 93,000 27,900 65,100 32,000 97,100 Calculation of Depreciation: 200,000 - 40,000 / 5 = $32,000 Calculation of NPV: Year 0 1 2 3 Cash Flow (200,000) 97,100 97,100 97,100 WC (50,000) DF(10%) 0.90909 0.82645 0.75131 PV 88,272.6 80,248.3 72,952.2 Total PV 399,130.6 NPV = 399,130.6 - 250,000 = $149,130.6 1 0.68301 66,320.2 2 3