Revenues generated by a new fad product are forecast as follows: Year 1 3 Revenues $60,000 45.000 30.000 10,000 0 Thereafter Expenses are expected to be 40% of revenues, and working capitat required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $60,000 in plant and equipment Required: a. What is the initial investment in the product? Remember working capital b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm's tax rate is 30%, what are the project cash flows in each year? Assume the plant and equipment are worthless at the end of 4 years, c. If the opportunity cost of capital ts 15%, what is the project's NPV? d. What is project IRR? . Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg A Reg Reg Cand D Complete this question by entering your answers in the tabs below. Reg A ReqB Reg Cand D What is the initial investment in the product? Remember working capital. Initial investment IS 72.000 Req B > Reg. A ReqB Reg C and D If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm's tax rate is 30%, what are the project cash flows in each year? Assume the plant and equipment are worthless at the end of 4 years. (Do not round intermediate calculations.) Year 1 2 Cash Flow $ 32,700 26,400 21.100 10.000 >ISIS 3 4 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A Reg B Reg C and D c. If the opportunity cost of capital is 15%, what is the project's NPV? (A negative value should be indicated by a mus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) d. What is project IRR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Show less C $ NPV IRR 4.011.90 X 11.70 % d