QUESTION 20 Use part III of the information to answer this. What are Bearkat Enterprises operating cash flows for year 3 of this project? A. $56,070 B. $62,190 C. $65,195 D. $276,990 QUESTION 21 Use part III of the information to answer this. What are Bearkat Enterprises terminal cash flows for this project? A. -$64,200 B. $0 OC. $16,900 D. $49,550 Use this information to answer questions 9-18 Intel is contemplating a new project where they will bring their computer chip manufacturing business back to the United States. They are estimating that they will invest $415.000 initially then will have positive cash flows over the next four years of Year 1: 545,000 Year 2: $125.000 Year 3: $160,000 Year 4: $175.000 Regardless of your answer in the previous question use a WACC of 72% (This is NOT the answer you should have gotten in part 1) Part II Cash Flow Estimation Use this information to answer questions 18 - 25 BearKat Enterprises is considering a project where they will make high end designer face masks They can buy the equipment they need to make the face masks for $250,000 plus another $20,000 for training and installation. They will have to increase inventory by $17.000 and accounts payable will increase $3,000. They think they can sell 23.000 masks a year at a price of $6.50 each for 4 years. The estimate variable costs at 52% of revenue. They follow a four years MACRS schedule for depreciation with the following depreciation rates Year 1:3396 Year 2: 45% Year 3: 1996 Year 4: 7% They believe the equipment has a salvage value of $45,000. BearKat Enterprises has a tax rate of 21%. And a WACC of 7.1%. Once the project is done the additional inventory will not need to be purchased and the accounts payable balance will be paid. Part IV: Sensitivity Analysis Use this information to answer questions 26-30. BearKat Enterprises has a WACC of 7.1% BeurKat Enterprises wants you to do a sensitivity analysis where you increase the mask price by 10% and decrease it by 10%. Also see what happens when you increase the variable costs by 10% and decrease them by 10%