The firm is evaluating an expansion project. The projected cash flows and other data are shown in the table:

Project Data
Project life	3 years
Unit sales (per year)	1,200
Price (per unit)	60.00
Variable cost (per unit)	20.00
Fixed cost (per year)	3,000
Fixed capital investments	90,000
Fixed assets are depreciated straight-line over 3 years to book value of zero
Net working capital investments	15,000
Salvage value of fixed assets at the end of three years	10,000
Marginal tax rate	15%
Cost of capital	20%

1. Assuming that fixed capital investments and working capital investments are made at the start of the project, what is the initial cash outlay?, Determine the after-tax operating cash flows.Assuming the recovery of the net working capital investment and the sale of fixed assets at the end of the projects life, calculate the terminal non-operating cash flow and Calculate the net present value. Would the acceptance of the project add value to the firm?