There is no salvage value at the end of the project. This is all what is given. I just need the answer to PART B.

Question 8 (10 marks) Revenues generated by a new fad product are forecasted as follows: Year Revenues $40,000 30,000 20,000 10,000 4 Thereafter Expenses are expected to be 40 percent of revenues, and working capital required in each year is expected to be 20 percent of revenues in the following year. The product requires an immediate investment of S50,000 in plant and equipment. a) What is the initial investment in the product? b) If the plant and equipment are in an asset class that has a CCA rate of 25 percent, and the firm's tax rate is 40 percent, what are the project cash flows in each year? c) If the opportunity cost of capital is 10 percent, what is the project NPV? Question 8 (10 marks) Revenues generated by a new fad product are forecasted as follows: Year Revenues $40,000 30,000 20,000 10,000 4 Thereafter Expenses are expected to be 40 percent of revenues, and working capital required in each year is expected to be 20 percent of revenues in the following year. The product requires an immediate investment of S50,000 in plant and equipment. a) What is the initial investment in the product? b) If the plant and equipment are in an asset class that has a CCA rate of 25 percent, and the firm's tax rate is 40 percent, what are the project cash flows in each year? c) If the opportunity cost of capital is 10 percent, what is the project NPV