Frank pipeline code is considering a project which will require the purchase of

$1\mathrm{.}4$

$$million in new equipment. The equipment will be depreciated straight line to zero book value over the five

$-$

year life of the project. Frank expects to sell equipment at the end of the project for

$280$

$,$

$000$

$$annual sales from this project are estimated at

$1\mathrm{.}1$

$$million and you want her

$200$

$,$

$000$

$$in fixed cost and variable cost equal to

$10$

$\%$

$$of sales networking capital equal to

$30$

$\%$

$$of sales will be required to support the project and built up in the beginning of the networking capital will be recouped at the end of the project the firm desires a minimal

$12$

$\%$

$$rate of return on this project. The tax rate is

$20$

$\%$

$$what is the recovery amount of attributable to networking at the end of the project? What is the amount of net after tax salvage value of the equipment? What is the value of the depreciation tax shield in year

$2?$

What is the operating cash flow each year? What is the IRR of this project?