Revenues generated by a new fad product are forecast as follows Revenues $50,000 20,000 10,000 5,e00 Year 1 2 3 Thereafter Expenses are expected to be 60 % of revenues, and working capital required in each year is expected to be 20 % of revenues in the following year. The product requires an immediate investment of $52,000 in plant and equipment a. What is the initial investment in the product? Remember working capital. ces Initial investment 62,000 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 40 % , 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 calculetions.) 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 40 %, 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 Cash Flow 1 3 4 nces c. If the opportunity cost of capital is 10 %, what is the project's NPV? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV 3 of 4 K Prev Next 4 points c. If the opportunity cost of capital is 10%, what is the project's NPV? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) eBook Hint NPV Print References d. What is project IRR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) IRR %