Problem 6-2 Calculating Project NPV The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 34 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Year 0Year 1 S 28,000 Year 2 Year 3Year4 Investment Sales revenue Operating costs Depreciation Net working capital spending $ 14,500 $ 15,000 $ 15,500 $ 12,500 2,500 7,000 3,100 7,000 390 3,200 7,000 440 3,300 7,000 340 340 a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) ear Year 2 Year 3 ear 4 Net income 2904 3168 3432 1980 b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) Year 0 ear 1 Year 2 Year 3 ear 4 Cash flow c. Suppose the appropriate discount rate is 12 percent. What is the NPV of the project? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV