unurernentai .Hl' v j wrpus 'uIlI'lSEl rartnets nae EvaluaLCu 3. Hugo! expansion mat man a positive NPV of $4,500,000. Joe W'hitman is proposing an "add~on" to the expansion. He believes investing an additional $500,000 in net working capital would increase the annual revenues by $140,000 per year and increase the annual cash operating expenses by $40,000 per year over the 10year life of the project. The investment in net working capital would not affect depreciation schedules and the rm gets it back at the end of 10 years. The rm has a 30% tax rate and the project has a 10% cost of capital. a. Assuming joe's estimates are correct, what are the outlay the annual net operating cash flow, and the aftertax salvage value x: the "addeon" project? b. What is the incremental NPV of the "add-on" investment in net working capital? ' c. What is the combined NPV of the expansion and the ''add-on" project