1. Use the following information for Questions 19-23. Mirza inc. is going to invest in a project. The first cost they incur is a 3.23M investment that will depreciate straight line to zero over the 5 years of the projects life.

   Sales generated will equal 5.7M and costs of 3.1M (excluding depreciation). In addition, the project requires an initial investment in new working capital of $0.4M, which will be recovered at the end of the project. After the project their investment will have a market value of 0.15M. Assume a 25% tax rate.

   What is the depreciation expense per year? (Round to THREE decimals, answer is in millions but do not include the units.)

3

20

1. What is the Operating Cash Flow of the project? (Round to THREE decimal places, answer in millions but do not include the units.)

4

21

1. What is the after-tax salvage value of the project? (Round to THREE decimal places, put your answer in millions but do not include the units)

3

22

1. What is the Net Working Capital recovered at the end of the project? (Round to ONE decimal place, put your answer in millions but do not include the units)

1

23

1. What is the net cash flow of the project? (Use the rounded answers from above, put final answer to THREE decimals as well and in millions but do not include the units)