1. A project has the following projected financial data for its first year of operation.

ITEM	AMOUNT
Sales	$500,000
Cost of Goods	$200,000
Other expenses	$100,000
Depreciation	$50,000
Investment in NWC	$20,000
Investment in Gross PPE	$0
Interest Expense	$40,000

If the tax rate for the firm is 30%, what is the project cash flow for the first year based on this information?

2. A 4-year project has the following working capital projections. These are the balance sheet values for each current asset and current liability. What is the investment in NWC for the first year of the project?

YEAR	0	1	2	3	4
Accounts Receivable	$1,000	$2,500	$3,000	$2,500	$1,000
Inventory	$4,000	$6,000	$6,000	$5,000	$3,500
Accounts Payable	$3,000	$4,000	$4,500	$3,500	$2,500