Question 3 (2 points) Listen XYZ Inc. is expanding its business. To do so it will need to purchase new equipment for $56,000. Further, this expansion will require $10,000 inventory of which $5,000 will be financed through an increase in accounts payable. The expansion is expected to generate annual revenue of $100,000 with operating costs of $60,000. Depreciation is straightline with the equipment cost depreciated in four equal installments over the 4 years of the project. The project will last for 4 years and the equipment will be depreciated straightline to a $0 salvage value. Compute the initial (year o) free cash flow. Your Answer: Answer Question 4 (2 points) 4) Listen Compute the NPV of the project below assuming that the cost of capital is 9%; Year 0 1 2 3 FCF -85,000|60,000 60,000 78,000 Your