Question 5 Your firm is evaluating whether to invest in an equipment that costs $30,000, and will be fully depreciated in five years using the straight-line depreciation method. Your firm projects that the investment will generate an annual revenue of $20,000 with an annual cost of $10,000. Your firm would also need additional net working capital of $10,000. The cost of capital is 8%, and the tax rate is 20%. (a) Calculate the initial outlay of the investment. ( 2 marks) (b) Determine the annual operating cash flow (OCF) of this investment? (2 marks) (c) Suppose the firm is able to sell the equipment for $5,000 at the end of the fifth year. Calculate the terminal cash flow of this investment