Question 2: Consider now the case in which the investment requires an amount of working capital equal to 10 and must be maintained at this level for the life of the project. At the end of the project all of the working capital is sold. (a) What is working capital? Give an example of working capital. Discuss the difference between the stock of working capital and the flow of working capital. (b) You determine that the following real cash flows apply as a result of this new information. How much is the project worth now? Assume: 1. Taxes are paid immediately (i.e. in Sep 23 for the Sep-23 Profits). The tax code where you are doing this project allows you to carry forward any tax losses your firm may incur. 2. The corporate tax rate is 40%. 3. Assume that the nominal rate of interest is 10% 4. Assume that the rate of inflation is 0%