Also, what is the annunal OCF ?

33. (15 points) Margarite's Enterprises is considering a new project. The project will require new fixed assets, $160,000 for additional inventory and $35,000 for additional accounts receivable. Short- term debt is expected to increase by $100,000 and long-term debt is expected to increase by $300,00 $325,000 for project has a 5,year life. The fixed assets will be depreciated straight-line to a zero book value over the life of the project. At the end of the project, the fixed assets can be sold for 25% of their original cost The net working capital returns to its original level at the end of the project. The project is expected to generate annual sales of$554,000 and costs of$430,000. The tax rate is 35% and the required rate of return is 15%. a) What is the amount of the after-tax cash flow from the sale of the fixed assets at the end of this project? (5 points) hat is the cash flow recovery from net working capital at the end of this project? (5 points)