A production project will generate an expected operating cash flow of $$300,000$ per year for Syears $($years $1-5).$ Undertaking the project will require an increase in the company's net working capital $($inventory$)$ of $$55,000$ today $($year $0).$ At the end of the project $($year $51.$ irventory will return to the original level. If the land is not used for the project, it could be sold for $$200,000.$ Net capital spending for the project is $$1,000,000.$ The weighted average cost of capital for the firm is $8$ K $.$

Explain the timeline of relevant cash flows fyear $0$ cash flow is what? year $1$ cash flow is what? Etc$).$

What is the net present value of this project? Do you accept or reject?A production project will generate an expected operating cash flow of $$300,000$ per year for Syears $($years $1-5).$ Undertaking the project will require an increase in the company's net working capital $($inventory$)$ of $$55,000$ today $($year $0).$ At the end of the project $($year $51.$ irventory will return to the original level. If the land is not used for the project, it could be sold for $$200,000.$ Net capital spending for the project is $$1,000,000.$ The weighted average cost of capital for the firm is $8$ K $.$

Explain the timeline of relevant cash flows fyear $0$ cash flow is what? year $1$ cash flow is what? Etc$).$

What is the net present value of this project? Do you accept or reject?