The Freeman Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 34 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.

Year 0Year 1Year 2Year 3Year 4Investment$41,000Sales revenue$21,000$21,500$22,000$19,000Operating costs4,4004,5004,6003,800Depreciation10,25010,25010,25010,250Net working capital spending470520570470?

a.Compute the incremental net income of the investment for each year.(Do not round intermediate calculations.)

Year 1Year 2Year 3Year 4Net income$$$$

b.Compute the incremental cash flows of the investment for each year.(Do not round intermediate calculations.A negative answer should be indicated by a minus sign.)

Year 0Year 1Year 2Year 3Year 4Cash flow$$$$$

c.Suppose the appropriate discount rate is 13 percent. What is the NPV of the project?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV$