A chemical-processing firm is planning on adding a second polyethylene plant at another location. The financial information for the first project year is provided as follows:

Sales $1,500,000 Manufacturing costs:

Direct materials $150,000 Direct labor $200,000 Overhead $100,000 Depreciation $200,000 Operating expenses $150,000 Equipment purchase $400,000 Borrowing to finance equipment $200,000 Increase in inventories $100,000 Decrease in accounts receivable $20,000 Increase in wages payable $30,000 Decrease in notes payable $40,000 Income taxes $272,000 Interest payment on financing $20,000

(a) Compute the working-capital requirement during this project period.

(b) What is the taxable income during this project period?

(c) What is the net income during this project period?

(d) Compute the net cash flow from this project during the first year.