4) Your company is considering a project that will generate sales revenue of $90 million in Year 1. Revenue is expected to grow at 2% per year for the life of the project. subsequent years. The project requires working capital equal to 16% of sales revenue, and has total operating costs excluding depreciation equal to 50% of sales. The equipment has a 3-year MACRS life and can be purchased and installed for $100 million. The project will end in three years. At that time, the equipment can be sold for $4.2 million. Your company's tax rate is 25% a) Find the initial cash flow (Yr. 0). b) Find the operating cash flows (Yrs. 1-3). MACRS Depreciation Tables 3-Year 5-Year 10-Year 33.33% 44.44 14.82 7.41 Ownership Year 1 2 3 4 5 6 7 8 9 10 11 20.00% 32.00 19.20 11.52 11.52 5.76 7-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 10.00% 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.55 6.55 3.29 100.0% 100.0% 100.0% 100.0% 5) Using the information from Problem 4: a) Find the after-tax cash flow from the sale of the equipment. b) Find the total flow for each year