:ZPLEASE USE EXCEL! Johnson, Inc. is considering a new project. The project will require $$350,000$ for new fixed assets, $$140,000$ for additional inventory, and $$45,000$ for additional accounts receivable. Short$-$term debt is expected to increase by $$110,000$ and long$-$term debt is expected to increase by $$330,000.$ The project has a $7-$year life. The fixed assets will be depreciated straight$-$line to a zero book value over the life of the project. At the end of the project, the fixed assets can be sold for $30$ percent of their original cost. The net working capital returns to its original level at the end of the project. The project is expected to generate annual sales of $$600,000$ and costs of $$400,000.$ The tax rate is $35$ percent and the required rate of return is $12$ percent.

A$.$ What is the project's cash flow at time zero?

A$.$ $$195,000$

B$.$ $$350,000$

C$.$ $$425,000$

D$.$ $$490,000$

E$.$ $$535,000$

B$..$ What is the amount of the earnings before interest and taxes for the first year of this project?

A$.$ $$97,500$

B$.$ $$130,000$

C$.$ $$150,000$

D$.$ $$200,000$

E$.$ $$250,000$

C$.$ What is the amount of the after$-$tax cash flow from the sale of the fixed assets at the end of this project?

A$.$ $$0$

B$.$ $$32,500$

C$.$ $$36,750$

D$.$ $$68,250$

E$.$ $$105,000$

D$.$ What is the cash fLow recovery from net working capital at the end of this project?

A$.$ $$30,000$

B$.$ $$75,000$

C$.$ $$90,000$

D$.$ $$185,000$

E$.$ $$205,000$