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XYZ is evaluating the reno project. The project would require an initial investment of 1 3 0 , 0 0 0 that would be depreciated

XYZ is evaluating the reno project. The project would require an initial investment of 130,000 that would be depreciated to 15,900 over six years using straight line depreciation. The project is expected to have operating cash flows of 47,800 per year forever. XYZ expects the project to have an after tax terminal value of 382,000 in 3 years. The tax rate is 30% what is (X+Y)/Z if X is the project relevant expected cash flow in year three, Y is the project relevant expected cash flow in year four and Z is a projects relevant expected cash flow in year two?

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