Consider a project to supply Detroit with 40000 tons of machine screws annuall

Consider a project to supply Detroit with 40000 tons of machine screws annually for automobile production. You will need an initial $5800000 investment in
threading equipment to get the project started; the project will last for six years. The accounting department estimates that annual fixed costs will be
$700000 and that variable costs should be $200 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the six-year
project life. It also estimates a salvage value of $680000 after dismantling costs. The marketing department estimates that the automakers will let the
contract at a selling price of $300 per ton. The engineering department estimates you will need an initial net working capital investment of $580000. You
require a 18 percent return and face a marginal tax rate of 30 percent on this project.

What is the estimated OCF for this project?

b) What is the estimated NPV for this project?