4 (20 points) A project requires an initial fixed asset investment of $600,000, which will be depreciated straight-line to zero over the 6-year life of the project. The pretax salvage value of the fixed assets at the end of the project is estimated to be $50,000. Proiected sales volume for each year of the project is shown below. The sale price is $50 per unit. A $30.000 initial investment in net working capital is required, and is recovered at the end of the project. Variable costs are $35 per unit, and fixed costs are 550,000 per year. The firm has a tax rate of 34%, and a required return on investment of 12%. 1 10,000 Year 2 11.000 3 12.000 4 13,000 6 15.000 5 14.000 Sales a. How many years of cash flow do you need to estimate for this project? Number of years to estimate cash flow = years b. What is the initial investment? Initial investment s c. What are the changes in net working capital for year and at the end of the project? ANWC at year 0 = ANWC at the end = d. What are the operating cash flow for year 1 and for year 3? OCF at year 1 = $ OCF at year 3 = e. What is the terminal cash flow? Terminal cash flow = f. What is NPV of the project? NPV = S