Question 5 Your rm is evaluating whether to invest in an equipment that costs $30,000, and will be fully depreciated in ve years using the straight-line depreciation method. Your rm projects that the investment will generate an annual revenue of $20,000 with an annual cost of $10,000. Your rm 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 ow (OCF) of this investment? (2 marks) (c) Suppose the rm is able to sell the equipment for $5,000 at the end of the fth year. Calculate the terminal cash ow of this investment. (2 marks) Question 6 A rm is considering an investment with an upfront cost of $100,000. The investment offers a cash inow of $40,000 for a 4-year period. Given the rm's cost of capital is 8%, calculate the net present value of the investment. Should the company invest in this project? Explain your reason(s). (4 marks)