You are a financial manager of a company that produces printers. Currently you are using NPV method to evaluate a 10 year project that will produce a new model. The WACC is 10% and the tax rate is 21%.

Here is the information give.

The project needs a set of machines that are worth $5 million. The company uses a 10 year straight line depreciation method so that 100% of fixed assets will be depreciated by year 10. there is no salvage value of the fixed asset.

In the past two years, the company had spent $800,000 in R&D to develop the new model

The project will be partially financed with dept and the interest to be paid every year would be $100,000

If the new project is taken it is expected that the investments in inventory will increase by $1,500,000, accounts receivable will increase by $1 million, accounts payable increases by $600,000 and the minimum cash balance will increase by$0.5 million. suppose these changes will reverse at the end of the project

The net sales from this project will be $8 million per year of which 20 percent will be from the lost sales of existing products. The cost of the production will be 40% of the net sales

The project will require hiring a new manager who will cost $100,000 per year in addition the firm needs to rent a new office for $50,000 a year

Currently the overhead of the firm is $500,000 and the accounting department will allocate 20% of this amount to the new project

what is the initial investments, operating cash flow in the first year, non operating cash flow at the end of the last year, and the NPV