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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 24 percent. Assume

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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 24 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. Year 1 Year 2 Year 3 Year 4 Year O $27,200 Investment Sales revenue $14,300 $ 15,900 $17,300 $13,800 Operating costs 3,350 3,325 5,100 3,700 Depreciation 6,800 6,800 6,800 6,800 Net working capital spending 345 245 315 195 ? a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) Year 1 Year 2 Year 3 Year 4 Net income b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative amount should be indicated by a minus sign.) Year 0 Year 1 Year 2 Year 3 Year 4 Cash flow c. Suppose the appropriate discount rate is 9 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV

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