Eli and Co. is considering a new project which would require a new equipment that would cost them $100,000. The project is expected to last for four years and generate an EBIT (1-T) (i.e., NOPAT) of $75,000 each year. Under MACR, the applicable depreciation rates are 33%, 45%, 15%, and 7% for year 1,2,3 and 4, respectively. The equipment purchased for the project would not have a salvage value at the end of the project and the project does not require any additional investment in working capital. The applicable tax rate is 25% and the WACC of the company is 7.5%. Question 5 Which of the following correctly represents the project's operating cash flows? 1st year = $108,000; 2nd year = $120,000; 3rd year = $90,000; 4th year = $82,000 1st year = $100,000; 2nd year = $100,000; 3rd year = $100,000; 4th year = 5100,000 year = $64,500; 2nd year = 567,500; 3rd year = $60,000; 4th year = $58,000 1 st 1st year = 589,250; 2nd year = 5101,250; 3rd year = $71,250; 4th year = 563,250