Your company is evaluating a project that will increase sales by $384,394 and costs by $185,000. The project will initially cost $660,000 for fixed assets that will be depreciated straight-line to a zero book value over the 10-year life of the project. The applicable tax rate is 25 percent. What is the operating cash flow for this project? QUESTION 2 A company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 25 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Suppose the appropriate discount rate is 10 percent. Determine the net working capital spending for Year 4 then calculate the NPV of the project. What is the project NPV? Year 0 Year 1 Year 2 Year 3 Year 4 Investment $155,000 Sales revenue $91,000 $93,300 $96,000 $99,100 Operating cost 20,000 20,600 21,600 23,000 Depreciation 38,750 38,750 38,750 38,750 Net working capital 17,000 15,000 13,000 11,000 ? spending $44,908.14 $52,610.37 $64,527.45 $38,689.63 $29,773.52