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 23 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 0 Year 1 Year 2 Year 3 Year 4 Investment $27,600 Sales revenue $ 14,700 $ 16,300 $ 17,700 $ 14,200 Operating costs 3,550 3,425 5,500 4,100 Depreciation 6.900 6,900 6,900 6,900 Net working capital spending 365 265 355 215 a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) Answer is complete but not entirely correct. Year 4 Year 1 3,068 Year 2 4,327 Year 3 3,915 Net income $ $ 2,464 b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative amount should be indicated by a minus sign.) Year 0 27,965 Answer is complete but not entirely correct. Year 1 Year 3 Year 4 3,068 $ 4,327 $ 3,915 2,464 Year 2 Cash flow c. Suppose the appropriate discount rate is 9 percent. What is the NPV of the project? (Do not round Intermediate calculations and round your answer to 2 decimal places, e... 32.16) Answer is complete but not entirely correct. NPV 1$ 16,738,58