Question: answer the question completely Smith Industries has a proposed four-year project with $240,000 equipment cost that falls under the 5-year category using straight-line depreciation (i.e.

answer the question completely
answer the question completely Smith Industries has a proposed four-year project with

Smith Industries has a proposed four-year project with $240,000 equipment cost that falls under the 5-year category using straight-line depreciation (i.e. there will be book value at end of project in year 4). Account Receivables will increase by $18,000. Account Payables will increase by $9,000. Inventory will increase by $7,000. The estimated annual EBIT will be $85,000 per year for each. of FOUR years. The equipment is expected to be sold for $22,000 in year 4. The firm's marginal tax rate is 30%. Smith Industries estimates that an 11 percent return is required for this project. a. Find the CAPEX at t=0 b. Find the change in net working capital at t=0 c. Find the initial outlay, CFO = Io d. Find the annual depreciation e. Find the net proceeds (salvage value after tax) at t-4 f. Find the terminal cash flow, TCF4

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