what is the net investment required at t = 0

what is the operating cash flow in year 2

what is the total value of the terminal non operating cash flow at year 3

what is the projects npv

The president of Real Time Inc. has asked you to evaluate the proposed computer's price is $40,000, and it falls into the MACRS 3-year class (3 The following information applies to the next four problems.) acquisition of a new computer. The 39 0,45%, of the computer would require an increasein net working capital of $2,000 at th 15% and 7%) analysis (assume that this will be captured back only at the very end of the ery beginning of the increase the firm's before-tax revenues by $20,000 per year but would als S5,000 per year. The computer is expected marginal tax rate is 40 percent, and the project's cost of capital is 14 percent (assume that the increase in n o, 15%, and 7%). Pur osts to be used for 3 years and then be sold for $25,000. The firm's working capital is captured back in the last period, and that all depreciation related cashflows are to be evaluated at the nominal risky rate, 14 percent). 1 What is the net investment required at t 0 (include changes in net working capital)? 20What is the operating cash flow in Year 2? What is the total value of the terminal year non-operating cash flows at the end of Year 3 (look at value recovery and change in net working capital)? 22What is the project's NPV