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that h Incremental NP) Corpus Christi Partners has evaluated a major expansion positive NPV of $4,500,000. loe Whitman is proposing a cffect of changes in

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that h Incremental NP) Corpus Christi Partners has evaluated a major expansion positive NPV of $4,500,000. loe Whitman is proposing a cffect of changes in net working capital? t had n "add-on" to the expansiona annual belie es inwesting an additional $500.000 in net working capital would increase the anHe revenues by $40,000 per year and increase the annual cash operating expenses by $40,00 per year over the 10-year life of the project. The investment in net working capital not affec would r depreciation schedules and the firm gets it back at the end of 10 years. The has a 30% tax rate and the project has a 10% cost of capital. a. Assuming Joe's estimates are correct, what are the outlay, the annual net operating Hlow, and the after-tax salvage value for the "add-on project? b. What is the incremental NPV of the "add-on" investment in net working capital? c. What is the combined NPV of the expansion and the "add-on" project? that h Incremental NP) Corpus Christi Partners has evaluated a major expansion positive NPV of $4,500,000. loe Whitman is proposing a cffect of changes in net working capital? t had n "add-on" to the expansiona annual belie es inwesting an additional $500.000 in net working capital would increase the anHe revenues by $40,000 per year and increase the annual cash operating expenses by $40,00 per year over the 10-year life of the project. The investment in net working capital not affec would r depreciation schedules and the firm gets it back at the end of 10 years. The has a 30% tax rate and the project has a 10% cost of capital. a. Assuming Joe's estimates are correct, what are the outlay, the annual net operating Hlow, and the after-tax salvage value for the "add-on project? b. What is the incremental NPV of the "add-on" investment in net working capital? c. What is the combined NPV of the expansion and the "add-on" project

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