Zipline is a proposed new tourist attraction in Chimgan Mountains near Tashkent. The relevant information and...

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Zipline is a proposed new tourist attraction in Chimgan Mountains near Tashkent. The relevant information and data for the new Zipline attractions are as follows: a. The new equipment costs $ 40,000 and is usable for 6 years. b. $3,000 has been already spent on confirming the legal feasibility of the business idea. c. Running and maintenance costs will amount to $6,000 per annum. d. Working capital requirement in total have been estimated as follows; $1000 at start increasing at the rate of $1000 per year till start of year 6. e. All $6000 working capital will be released /recovered at the end of project. f. Zipline is expected to generate $30,000 in the first year and $33,000 per year from the second year onwards till year 6. g. Zipline will have to incur additional fixed cost of $11000 per year directly as a result of this project. h. $5,000 of annual fixed cost will be allocated from general cost to this project. i. The equipment can be sold at $ 3,000 at the end of its useful life. j. Annual tax payment for this project is expected to be $2,000 for first year and growing at a rate of $1,000 per each year. k. The project will be financed by borrowing $50,000 at 8% interest per annum. 1. The required rate of return for the project is 10%. REQUIRED: i) For the proposal of Project, Zipline, show relevant cash flows from the project. Justify exclusion of each irrelevant cash flow. Zipline is a proposed new tourist attraction in Chimgan Mountains near Tashkent. The relevant information and data for the new Zipline attractions are as follows: a. The new equipment costs $ 40,000 and is usable for 6 years. b. $3,000 has been already spent on confirming the legal feasibility of the business idea. c. Running and maintenance costs will amount to $6,000 per annum. d. Working capital requirement in total have been estimated as follows; $1000 at start increasing at the rate of $1000 per year till start of year 6. e. All $6000 working capital will be released /recovered at the end of project. f. Zipline is expected to generate $30,000 in the first year and $33,000 per year from the second year onwards till year 6. g. Zipline will have to incur additional fixed cost of $11000 per year directly as a result of this project. h. $5,000 of annual fixed cost will be allocated from general cost to this project. i. The equipment can be sold at $ 3,000 at the end of its useful life. j. Annual tax payment for this project is expected to be $2,000 for first year and growing at a rate of $1,000 per each year. k. The project will be financed by borrowing $50,000 at 8% interest per annum. 1. The required rate of return for the project is 10%. REQUIRED: i) For the proposal of Project, Zipline, show relevant cash flows from the project. Justify exclusion of each irrelevant cash flow.