Waqa Ltd is a manufacturer of cutlery. The firm's managers have asked you to evaluate a project proposal to diversify into manufacturing nailfiles. A new machine to mould the plastic on to the end of the nailfiles would need to be purchased at a cost of $150 000. Freight and insurance for the new machine will cost $3500 and installation will cost a further $1200. The files would be pressed on existing equipment. The files would be produced by introducing a night shift, so will not displace any current production capacity. The existing machine would be modified at a cost of $20000. If the new project goes ahead, Waqa will need to increase the raw materials inventory by $2500. The finished goods inventory would need to be $4500 higher than its current level. Waqa will supply 30 -day terms to the distributors of the nailfiles and this is expected to result in an increase of $60000 in accounts receivable. The increase in accounts receivable will occur during the first week of production for the project. Waqa has arranged credit with suppliers of the plastic that will be used in the production process. This is expected to result in an increase of $15000 to accounts payable. (a) What is the installed cost of the project? (b) What is the change in net working capital? (c) What is the initial outlay for the nailfile project