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Revenues generated by a new fad product are forecast as follows: 3 TER 1 2 2 Revenues 560.000 45.000 30.000 10,000 Theretter ce Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the foflowing year. The product requires an immediate investment of $60,000 in plant and equipment Required: a. What is the initial investment in the product? Remember working capital b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm's rate is 30%, what are the project cash flows in each year? Assume the plant and equipment we worthless at the end of 4 years c. If the opportunity cost of capital is 15%, what is the projects NPV? d. What is project IR? rence Complete this question by entering your answers in the tabs below. RAGA Red and What is the initial investment in the product? Remember working capital investment R> Complete this question by entering your answers in the tabs below. Req A ReqTB Req C and D If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciat firm's tax rate is 30%, what are the project cash flows in each year? Assume the plant and equipment are wort end of 4 years. (Do not round intermediate calculations.) Year Cash Flow 1 2 3 4 Complete this question by entering your answers in the tabs below. Req A ReqTB Req C and D If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciat firm's tax rate is 30%, what are the project cash flows in each year? Assume the plant and equipment are wort end of 4 years. (Do not round intermediate calculations.) Year Cash Flow 1 2 3 4