XYZ Co. previously paid a consulting company $100 to analyze whether it should increase production and, based on that analysis, has decided to go ahead with the project. The new project requires new equipment with a cost of $1,900, with shipping and installation expenses of $500.A $300 increase in net working capital is also necessary. XYZ Co expects the project to last for three years, at which point the equipment will have a book value and salvage value of $0. XYZ Co uses straight-line depreciation. The new equipment will generate $1,800 in sales revenue (every year starting at t= 1 and continuing without growth in years 2 and 3). Variable operating costs are expected to be 50% of the revenues from sales. The tax rate is 40% and the project's WACC is estimated to be 4%. SHOW YOUR WORK.Place answers in the table provided.

t = 0 |t = 1 | t = 2 |t = 3

OCF

NCS

NWC

CFFA

a.(2 points)Find the OCF for at t= 1, 2 and 3.Record in the table provided.Show your work.

b.(2 points)Find net capital spending (NCS) at t= 0, 1, 2, and 3.

c.(2 points)Find the change in net working capital (NWC) at t=0, 1, 2 and 3.

d.(2 points)What is the NPV of this project if the discount rate is 10%