XYZ inc. considers an investment project that requires S500,000 in new equipment and $40,000 in extra NWC at the beginning of the project. The NWC will need to be increase by another $5,000 at the end of year t2 and it will remain at the $45,000 level until the project is completed. The projects will lead to an increase in operating pre-tax net revenue of $180,000 per year and will last for 4 years. At the end of the project (beginning of year t=5), the equipment can be sold for the salvage value of $200,000. The equipment belongs to the CCA class with d=30%, the corporate income tax rate is 40%, and the cost of capital is 8% Problem 1 (2 points): Write down the UCC/CCA table. Use the format below: Year UCC (beginning of the year) CCA UCC (end of the year) 1 2 3 4 Problem 2: Find the original cash outflow (at t=0) Problem 3: Find cash flow at t1 Problem 4: Find cash flow at 22 Problem 5 (4 points): Find the combined cash flow at t=4 (including the PV at t-4 of the effect of this project on taxes from t=5 until infinity) Problem 6: Find the NPV of the project (note: cash flow at t=3 is equal to $143700 so, you may use this number in your calculations) Problem 7: Find PV of the operational cash flow Problem 8: Find PV of the effect of all changes in NWC after the initial increase Problem 9: Find PV of the tax shield Problem 10: Write down the expression for the NPV of the project based on the formula approach using all computed or given numbers instead of symbols and compute it. How does it compare to the one you found in Problem 6? Problem 11: By how much NPV would have changed if XYZ would not have to increase NWC by $5000 at t=2