Semester 2, 20XX BUACC3701 Financial Management Question 4 _(10 Marks) B4. a If a proposed new investment is undertaken by the DEL Company, it is expected to produce projected sales in year 5 of $1,650,000. Variable costs are 60 per cent of sales, and costs are $300,000. Depreciation for the year will be $175,000. Prepare a projected Income Statement assuming a 30 per cent tax rate. (6 Marks) B4.b Assume the sales and costs other than depreciation are cash. What cash flow would be included in a capital investment analysis? (3 Marks) B4.c Why is the answer to (b) different from the answer in (a)? (1 Marks)