Problem 3. Your company is trying to determine the cash flows from a proposed new project that costs $1,000,000. If the new equipment is purchased, incremental sales revenue will be $500,000 per year. Direct costs will be 35% of sales and depreciation expense will be taken straight-line over 4 years ($250,000 per year). There are no other increases in fixed costs. The interest rate is 8%, and the tax rate is 30%. Compute the incremental net income increase in NOPAT) and operating cash flow that is projected for this project, per year. Show all of your work below. per year Answers: Incremental NOPAT Operating cash flow for the project, per year