Slowly Company has obtained the following information about a proposed project:

Future sales $200,000

Future expenses, excluding depreciation $140,000

Depreciation expense per year $35,000

Estimated salvage value in 5 years 0

Cost of equipment $175,000

Cost of capital 10%

Income tax rate 40%

Estimated useful life(in years) 5

Depreciation method Straight-line

Present value of ordinary annuity

at 10% for 5 periods 3.7908

Present value of one at 10% for 5 periods 0.6209

Required:

A) What is the net after-tax income per year?

B) What is the annual after-tax cash flow from depreciation expense?

C) What is the NPV of the project?