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 21 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 $27,900 Year 1 Year 2 Year 3 Year 4 Investment Sales revenue Operating costs Depreciation Net working capital spending 380 280 385 230? $15,000 $ 16,600 $18,000 $14,500 3,700 3,500 5,800 4,400 6,9756,975 6,975 6,975 a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) Answer is complete but not entirely correct. Year 1 Year 2 Year 3 Year 4 Net income 20,283 S 21,3 20,441 b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative amount should be indicated by a minus sign.) Answer is complete but not entirely correct. Year 4 Year 3 Year 0 Year 1 Year 2 28,6910| 31,057 C 27,979@j$ 26.978 $ s -28.280 os 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 answer to 2 decimal places, e.g. 32.16.) 3 Answer is complete but not entirely correct. S 58,452.00 NPV