The following table is the financial statement of XYZ Inc. The company is now planning a $2-$year investment plan. It will cost the investment $$80,000$ to purchase a new machine for the project. The machine can be depreciated straight$-$line down to $$20,000$ in $2$ years. It is estimated that the machine can be sold for $$10,000$ in the market at the end of year $2.$ The project does not require new working capital. The company is paying $20\%$ tax. The project requires a rate of return of $10\%.$ The following is the financial information of the company.

a$)$ Estimate the Free Cash Flow for year $1$ and year $2.$ This homework is due on Sunday, $1/14/2024,$ before midnight. b$)$ Assume that the company is using all equity financing. Evaluate the net present value of the project. c$)$ Assume further that the company uses $40\%$ debt and $60\%$ equity. And the riskfree interest rate is assumed to be $5\%.$ Use the WACC to evaluate the value of the project. d$)$ How does your answer to part c$)$ change if there is a one$-$time increase of working capital $($$$20,000)$ at the beginning of the project?

year $012$

Investment $-80,00000$

NWC $000$

Revenue $5000050000$

Costs $1000010000$

dep $3000030000$