The following real levels of current assets and current liabilities are required over the life of the project:

2018201920202021

Accounts Receivable 0150,000225,000 0

Inventory75,000130,000130,000 0

Accounts Payable25,00050,00050,000 0

Wages Payable1,00018,00018,000 0

If inflation of 3 percent per year is expected over the life of the project and the firm's nominal WACC is 12.4%,

a.Calculate nominal levels of net working capital (CA - CL) for 2018 - 2021.

b.Calculate the investment in working capital for years 2018 - 2021.

c.Calculate the present value of the investment in working capital as of 2018.