California Hideaways is considering a new project whose data are shown below. The equipment that would be used has a 5-year tax life, would be depreciated by the straight-line method over its 5-year life, and would have zero salvage value. In addition, this project requires an investment in new operating working capital of $5,000 (recoverable at the end of the project). Revenues and costs are expected to be constant over the project's 5-year life.

Fixed Asset cost (depreciable basis): $50,000

Straight-line depreciation rate: 20.00%

Sales revenues, each year: $60,000

Costs excl. depreciation, each year: $45,000

Tax rate: 40%

r = WACC: 10.0%

Required:

(a) What is the total investment (cash flow) at t = 0? _____________

(b) What is the depreciation expense for Year 1? _____________

(c) What is the operating cash flow for Years 1, 2, 3, 4, and 5 (same amount)? __________________

(d) What is the total cash at t = 5? ____________

(e) What is the project's NPV? _____________