Revenues generated by New Link product are forecast as follows: year 1: $40,000, year 2: $30,000, year 3: $20,000, year 4: $10,000. Expenses are expected to be 40% of revenues and working capital required in each year is expected to be 20% of revenues for the following year. The product requires an immediate investment of $45,000 in plant and equipment

a. What is the initial investment in the product? Remember working capital

b. If the plant and equipment are depreciated to a salvage value of zero using straight line depreciation and the firms tax rate is 40%, what are the project cash flows in each year?

c. If the opportunity cost of capital is 12%, what is project NPV, IRR, and MIRR?