The expected cash flow forecasts of an investment are listed on the table below.

The investment has a

$12$

$\%$

$$cost of capital and a

$5$

$-$

year holding period. The depreciation will be

calculated using straight line method and ignoring salvage value.

Initial investment

$($

$ thousands

$)15$

$,$

$000$

Salvage value

$($

$ thousands

$)2$

$,$

$500$

Initial revenues

$($

$ thousands

$)15$

$,$

$000$

Variable costs

$($

$\%$

$$of revenues

$)40\mathrm{.}0$

$\%$

Initial fixed costs

$($

$ thousands

$)4$

$,$

$500$

Inflation rate

$($

$\%$

$)4\mathrm{.}0$

$\%$

Discount rate

$($

$\%$

$)10\mathrm{.}0$

$\%$

Receivables

$($

$\%$

$$of sales

$)18\mathrm{.}0$

$\%$

Inventory

$($

$\%$

$$of next year's costs

$)15\mathrm{.}0$

$\%$

Tax rate

$($

$\%$

$)21\mathrm{.}0$

$\%$

Calculate:

$($

a

$)$

$$Cash flows from working capital;

$($

b

$)$

$$Cash flows from operating;

$($

c

$)$

$$NPV of this

investment; and

$($

d

$)$

$$NPV of the investment, if the forecasted inflation rate changes from

$4$

$\%$

$$to

$8$

$\%$

and the discount rate changes from

$10$

$\%$

$$to $14\%$

$*$Must show all work$/$calculations$.$ It can be in Excel.