Daisy Security Products is considering a project which will require the investment of R1.4 million in new equipment. The equipment will be depreciated straight-line to a zero book value over the 4-year life of the project. Daisy's expects to sell the equipment at the end of the project for 20% of its original cost. Pre-tax earnings (EBIT) from this project are estimated 7 at R850 000. Net working capital equal to 20% of the pre-tax earnings will be required to support the project and all of the networking capital will be recouped at the end of the project. The firm desires a minimal 14% return on this project. The applicable tax rate is 28% You can use the table below to assist in answering the questions to follow. Show all cash outflows as-R, eg -R100. YEAR O YEAR 1 YEAR 2 YEAR 3 YEAR 4 051 Initial outlay A Networking capital A Q52 053 OCF 054 054 054 054 055 Terminal cash flow Total cash flow per period 056 Q57 Q57 Q57 Q58 51 Calculate the initial outlay in Year 0. (%) 52 Calculate the net working capital applicable for Year 0. (% 53 Calculate the net working capital applicable for Year 4. (1) 54 Calculate the operating cash flows (OCF) applicable for each year from Year 1 to 4. (1) (4) 55 Calculate the terminal cash flow applicable for Year 4. 56 Calculate the total cash for Year 0. 57 Calculate the total cash for Year 1 to 3. 58 Calculate the total cash flow for Year 4. Calculate the NPV for the project. 60 Calculate the IRR for the project. (1) 59 (2) (1)