D Question 5 1 pts Use this information to answer questions 5 - 8. Your small company is considering producing a new line of orange flavored soft drink. This project is expected to generate additional revenues of $220,000 and additional costs of $100,000 per year for 5 years (years 1-5). Undertaking the project will require an increase in the company's net working capital (inventory) of $30,000 today (year O). At the end of the project (year 5), inventory will return to the original level. Fixed assets needed for the project would cost $350,000. Assets will depreciate straight line to $50,000 (the market value of the assets at the end of the project, which will be sold). The marginal tax rate is 10%. The weighted average cost of capital (interest rate) for the firm is 8%. What is the cost of the project (at time zero on the timeline)? 30,000 350,000 380.000 120,000 Question 6 What is the operating cash flow for years 1-4? 60,000 54,000 O 114,000 120,000 1 pts 1 pts Question 7 In year 5, the firm would receive the OCF you calculated in question 6. What other adjustments are needed to the year 5 cash flow? O only to subtract $30,000, which is the change in net working capital in year 5. O only to add $45,000 from the sale of fixed assets ($50,000 market value minus 10% [$5,000] in taxes. O add $50,000 from the sale of fixed assets, and also add the $30,000 change in net working capital. O add $50,000 from the sale of fixed assets, and subtract the $30,000 change in net working capital. Question 8 What is the present value of this project? $157,753.18 O$(-)157,753,18 $129,615.60 $228,549,72 1 pts