Use the following information to answer questions 1 through 5: Please show work

The required return on a project is 11.5 percent. The initial cash outflow of a project is $12,000 and the inflows are as follows:

Year	Cash Inflows
1	$4,350
2	-$50
3	$9,250
4	$4,050

1. What is the net present value of the project?

2. What is the IRR of the project?

3. What is the payback of the project?

4. What is the profitability index of the project?

5. You have just completed a $20,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $100,000, and if you sold it today, you would net $115,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $30,000 plus an initial investment of $5,000 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity?

6. A proposed new project has projected sales of $156,000, costs of $119,000, and depreciation of $4,500. The tax rate is 35 percent. Calculate operating cash flow.

7. You purchased a machine for $1 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 35%. If you sell the machine today (after three years of depreciation) for $700,000, what is your after-tax cash flow from selling the machine?

8. Castle View Games is opening a new division that will develop software. Since it is a new division, there is currently no net working capital invested. The CFO has projected the following amounts for current assets and current liabilities for the division. Cash:$6,000; Accounts Receivable:$21,000; Inventory:$5,000; and Accounts Payable: $18,000. Calculate the net working capital investment that will be required for the software division.

9. You are considering making a movie. The movie is expected to cost $10 million up front and take a year to produce. After that, it is expected to make $5 million in the year it is released and $2 million for the following four years. If you require a payback period of two years, will you make the movie?