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The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 25 percent.

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The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 25 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Investment Year O Year 1 $27,800 Year 2 Year 3 Year 4 Sales revenue $14,900 $16,500 $17,900 $14,400 Operating costs 3,650 3,475 5,700 4,300 Depreciation 6,950 6,950 6,950 6,950 Net working capital spending 375 275 375 225 ?

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