What are the following project's operating cash flows for year 1: Sales: $11,000 All costs excluding depreciation: 20% of sales Annual depreciation expense: $3,000 Tax rate: 21% Purchase price of asset: $8,200 Current assets: $1,000 Current liabilities: $700 A $4.200 B $6,200 C $6,218 D $7,582 E None of the above What is our firm's initial investment, using the above data. A $1,000 B $2,500 $3,400 D $8,200 E None of the above 2. 3. ABC Inc, is reviewing a proposal for a new project. The purchase price of assets needed for the project is estimated to be $120,000. The firm expects the following increases in the listed accounts: Accounts Receivable: $12,000 Accounts Payable: $16,000 Inventories: $3.000 How much net working capital will the firm need? A) $1,000 B) $9,000 $10,000 17