1. What are the cash flows related to net capital spending for this project?
Answer $300000 at time 0 only. $300000 at time 0 and $8000 at the end of year 4. -$300000 at time 0 and $8000 at the end of year 4. -$300000 at time 0 and $4800 at the end of year 4. -$300000 at time 0 and -$4800 at the end of year 4. 2. What are the cash flows related to change in net working capital?
Answer $10000 cash outflow at time 0 and the end of year 1 and $12000 cash outflow at the end of year 2 and year 3. $10000 cash outflow at time 0 and $2000 cash outflow at the end of year 2. $10000 cash outflow at time 0 $2000 cash outflow at the end of year 2 and $12000 cash inflow at the end of year 4. $10000 cash inflow at time 0 $2000 cash inflow at the end of year 2 and $12000 cash outflow at the end of year4. $10000 cash inflow at time 0 and $12000 cash outflow at the end of year 4. 3. Find out the operating cash flow (OCF) in year 1.
Answer $142000 $102000 $42000 $162000 $170000 4. What is the NPV of the project?
Answer $132285 $256419 $180933 $156908 $230334