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UAEU Limited is considering a new project that complements its existing business. The machine required for the project costs $3.6 million. The marketing department predicts that sales related to the project will be $3.45 million in year 1, $3.55 million in year 2, $2.65 million in year 3 and $1.55 million in year 4, after which the market will cease to exist. The machine will be depreciated straight-line over a tax-life of 4 years. At the end of the project, the machine will be worth $600,000 in the market. The Cost of goods sold and operating expenses related to the project are predicted to be 15 percent of next year's sales, meaning that there won't be any cost in year 4. UAEU Limited also needs to spend $400,000 immediately in additional net working capital. The additional net working capital will be recovered in full at the end of the project's life. The corporate tax rate is 20 percent. The required rate of return is 20 percent. 1. Calculate the net total cash flows from year 0 to year 4. Show your steps 2. What is the NPV for this project? Conclude. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U Paragraph Arial 14px O WORDS POWERED BY TINY