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 $14\%$