As a financial aralyst, you must evaluate a proposed project to produce printer cartridges. The equipment would cost $$55,000,$ plus $$10,000$ for

Installation. Annual sales would be $4,000$ units at a price of $$50$ per cartridge, and the project's life would be $3$ years. Current assets would increase by

$$5,000$ and payables by $$3,000.$ At the end of $3$ years, the equipment could be sold for $$10,000.$ Deprectition woutd be based on the Macks $3-$year

class; so the applicable rates would be $33\%,45\%,15\%,$ and $7\%.$ Variable costs would be $70\%$ of sales revenues, foxed costs excluding depreciation would

be $$30,000$ per year, the marginal tax rate is $40\%,$ and the corporate WACC is $11\%.$

What is the required investment, that is$,$ the Year $0$ project cash, flow?

What are the project's annual net cash flows?

What is the terminat year profect cast flow?

You did a scenario analysis to better understand the project's NPW:

by $0\mathrm{.}5*.$ if the CV is $0\mathrm{.}75$ or less: Then a revised NPV is calculated. What WACC whould be uned for this project?