(The following information applies to the next six questions.) Burress Beverages is considering a project where they would open a new facility in Seattle, Washington The company's CFO has assembled the following information regarding the proposed project: It would cost $500,000 today to construct the new facility and will be depreciated on a straight-line basis over five years. It will need to increase its inventory by $100,000, where $70,000 of this inventory will be financed with accounts payable. The CFO has estimated that the project will generate the following amount of revenue over the next three years: Year 1 Revenue = $1.0 million Year 2 Revenue = $1.2 million Year 3 Revenue = $1.5 million Operating costs excluding depreciation equal 70 percent of revenue. Att - 3, the facility's estimated selling price will be $200,000 The project's cost of capital is 14 percent. The company's tax rate is 40 percent 1. The project's initial outlay is* O a. ($330,000) O b. ($500,000) O c. ($530,000) O d. ($600,000) O e. ($670,000) 2. The cash flow at year 1 is equal to O a $120,000 O b. $220,000 O c. $420,000 O d. $520,000 O e. $800,000 3. The cash flow at year 2 is equal to O a. $504,000 O b. $604,000 O c. $156,000 O d. $256,000 O e. $456,000 4. The after-tax market value of the facility is O a. $0 O b. $80,000 O c. $120,000 O d. $200,000 O e $300,000 5. The cash flow at year 3 is equal to a. $510,000 O b. $540,000 c. $460,000 d. $430,000 O e. $640,000 6. What is the project's net present value (NPV)? O a. $ 69,207 b. $178,946 O c. $286,361 O d. $170,453 e. $224451