USE THIS INFORMATION FOR PROBLEMS. A firm has a project and the purchase price is 87K with 3K freight and installation and 7K in spare parts and inventory. Use a 5 year straight line depreciation and a 20 % tax bracket. Revenues are 150K each year for 3 years and Costs are 85K per year for the 3 years. The firm sells the business for 55K after only 3 years .

5. Find the INITIAL INVESTMENT (I.I.) and the NOCF = Net Operating Cash Flow For years 1 , 2 and 3

5A. Find the TCF Terminal Cash Flow for year 3