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THIS PROBLEM HAS 8 QUESTIONS. EACH QUESTION HAS 4 POSSIBLE ANSWERS. THERE IS A DROPDOWN MENU FOR EACH QUESTION. MAKE SURE YOU ANSWER EACH QUESTION.

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THIS PROBLEM HAS 8 QUESTIONS. EACH QUESTION HAS 4 POSSIBLE ANSWERS. THERE IS A DROPDOWN MENU FOR EACH QUESTION. MAKE SURE YOU ANSWER EACH QUESTION. You are evaluating a new project for your company FINSOFT, Inc., which has developed a new financial software. The project requires an initial investment of $588,000 in fixed assets which are to be depreciated straight-line to zero over the 3-year project life. At the end of year 3, all fixed assets are sold for an estimated resale value of $147,000. Net Working Capital requirements at the beginning of each year equal 10% of the projected sales during the following year. Projected sales from the new software are $700,000 in year 1,$840,000 in year 2 , and $980,000 in year 3 . The variable costs amount to 50% of projected sales and fixed costs are $84,000 per year. The tax rate is 20%. Hints: Change in NWC at t=0 equals 10% of the projected sales at t=1. It is an outflow. Change in Fixed Assets at t=3 equals the resale value minus the tax on the capital gain. It is an inflow. QUESTIONS: Question 1: Operating Cash Flow at t=1 (Year 1 ) is Question 2: Operating Cash Flow at t=2( Year 2 ) is Question 3: Operating Cash Flow at t=3( Year 3) is Question 4: Change in NWC at t=0 is Change in NWC at t=0 equals 10% of the projected sales at t=1. It is an outflow. Change in Fixed Assets at t=3 equals the resale value minus the tax on the capital gain. It is an inflow. QUESTIONS: Question 1: Operating Cash Flow at t=1 (Year 1 ) is Question 2: Operating Cash Flow at t=2 (Year 2) is Question 3: Operating Cash Flow at t=3( Year 3) is Question 4: Change in NWC at t=0 is Question 5: Change in NWC at t=1 (Year 1 ) is Question 6: Change in NWC at t=3 (Year 1) is Question 7: Change in Fixed Assets at t=0 (initial investment) is Question 8: Change in Fixed Assets at t=3( Year 3) is

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