Q.1 answer the following:

Hunter's Hut is considering a project that will require additional inventory of $48,000 and will increase accounts payable by $22,000. Accounts receivable is currently $297,000 and is expected to increase by four percent if this project is accepted. The company requires NWC at the end of each year equal to ten percent of annual sales that are expected to be a constant of $550,000 each year. What is the project's cash flow for the change in net working capital in Year 1?

$37,880

$66,550

$55,000

$42,250

$17,120

A project will produce an operating cash flow of $56,200 a year for 5 years. The initial fixed asset investment in the project will be $238,900. The net aftertax salvage value is estimated at $67,000 and will be received during the last year of the project's life. The initial investment in net working capital is $20,000 and no incremental NWC will be required during the project. What is the net present value of the project if the required rate of return is 15.2 percent?

$20,627.54

$5,120.52

-$28,517.34

$18,374.86

$20,627.54