Chapter 6 - Review Problems (Graded) Save 2. Problem 6-2 Calculating Project NPV 14.28 point book Reference The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 24 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All networking capital is recovered at the end of the project. Year 0 Year 1 Year 2 Year Year 4 Investment $26 700 Sales revenue $13,800 $ 15.400 $16,800 $ 18,300 Operating costs 3,100 3.200 4.600 3.200 Depreciation 6.675 6.675 6.675 6,675 Networking capital spending 320 220 265 2 170 0. Compute the incremental net income of the investment for each year (Do not found Intermediate calculations.) Year 1 Year 2 Year Year Not income I Chapter 6 - Review Problems (Graded) Saved 2 1428 b. Compute the incremental cash flows of the investment for each year. (Do not round Intermediate calculations. A negative amount should be indicated by a minus sign) Year Year 1 Yeat 2 Year 3 Yeard Coshow c. Suppose the appropriate discount rate is 12 percent. What is the NPV of the project? (Do not round Intermediate calculations and round your answer to 2 decimal places, 0.32.16.) NIP