Use the following information for the next 3 questions. AbbVie Company is considering to purchase a new control device. The cost of the new device is $58,300, and the machine will be depreciated straight-line over a twoyear period to zero salvage value. The firm's tax rate is 40%. At the outset of the project, AbbVie Company anticipates investing $5,100 in raw materials inventory. Management has decided to terminate the project in two years and sells the device at an anticipated used price of $9,720. AbbVie Company has forecast sales and costs over the two-year time horizon: AbbVie Company expects that it will have to add about $5,940 per year to its net working capital in year 1 (i.e., net working capital investment in year 1 is $5,940 ), and add nothing in year 2 . What is the initial investment, i.e., start-up cost (C0) ? $61,870$63,400$58,300$53,200 Question 4 (4 points) What is the net operating cash flow at the end of year 1 , i.e. C1 ? $67,220$73,050$84,930$73,160 What is the net operating cash flow at the end of year 1 , i.e. C1 ? $67,220$73,050$84,930$73,160 Question 5 (4 points) What is the net operating cash flow at the end of year 2 , i.e. C2 ? $68,552$79,590$79,592$63,342 Use the following information for the next 3 questions. AbbVie Company is considering to purchase a new control device. The cost of the new device is $58,300, and the machine will be depreciated straight-line over a twoyear period to zero salvage value. The firm's tax rate is 40%. At the outset of the project, AbbVie Company anticipates investing $5,100 in raw materials inventory. Management has decided to terminate the project in two years and sells the device at an anticipated used price of $9,720. AbbVie Company has forecast sales and costs over the two-year time horizon: AbbVie Company expects that it will have to add about $5,940 per year to its net working capital in year 1 (i.e., net working capital investment in year 1 is $5,940 ), and add nothing in year 2 . What is the initial investment, i.e., start-up cost (C0) ? $61,870$63,400$58,300$53,200 Question 4 (4 points) What is the net operating cash flow at the end of year 1 , i.e. C1 ? $67,220$73,050$84,930$73,160 What is the net operating cash flow at the end of year 1 , i.e. C1 ? $67,220$73,050$84,930$73,160 Question 5 (4 points) What is the net operating cash flow at the end of year 2 , i.e. C2 ? $68,552$79,590$79,592$63,342