Working capital and capital

budgeting.

Working capital investment is

23%

of the anticipated first year sales for Wally's Waffle House. The first-year sales are currently projected at

$4,300,000.

The incremental cash flow (not including working capital investment) is

Initial cash flow=$13,700,000 outflowCash flow years 1 through 10=$2,870,000

What is the internal rate of return of the ten-year project with working capital factored into the cash flow? What is the net present value at a

12%

weighted average cost of capital? What is the maximum investment in working capital for an acceptable project with a

12%

weighted average cost of capital?

What is the internal rate of return of the ten-year project with working capital factored into the cash flow? (Round to two decimal places.)

What is the net present value at a

12%

weighted average cost of capital? Enter a negative number if the project's NPV is negative. (Round to the nearest dollar.)

What is the maximum investment in working capital for an acceptable project with a 12% weighted average cost of capital? (Round to the nearest dollar.)