You are a manager of Johnson points is and & Johnson medical (JNJ).JNJ is considering to produce a new drug, JNJ's WACC is 12% and JNJ has marginal tax rate of 35%. JNJ needs to invest a total of $300,000 in medical equipment today. Assume that this $300,000 will be depreciated 60% in year 1, 30% in year 2, and 10% in year 3. Furthermore the cost of removing the equipment will roughly equal its actual value in 3 years, so it will be essentially worthless on a market value basis as well the project will require a net working capital of $25,000 throughout the period revenues are expected to be 300,000/year, starting from year 1. Costs are expected to be $90,000/year again starting from year 1. What is the operating cash flow (OCF) in year? What is the NPV of the project? What is the NPV if at the end of the project the equipment can be sold for S12.000? How would the reported earnings (EBIT) change if JNJ uses straight-line depreciation instead of 60%-30%-10%? Simply state whether it increases, decreases, or stays the same