Margarite's Enterprises is considering a new project. The project will require $$325,000$ for new fixed assets. It will also initially require $$160,000$ for additional inventory, $$35,000$ for additional accounts receivable, and short$-$term debt of $$100,000.$ Thereafter, the net working capital will be $10\%$ of sales. The project has a $3-$year life. The fixed assets will be depreciated using a $3-$year MACRS as follows: $33\mathrm{.}33\%,44\mathrm{.}44\%,14\mathrm{.}8\%,$ and $7\mathrm{.}43\%$ for years $1-4.$ Assume that all of the net working capital will be fully recovered at the end of the project. The project is expected to generate annual sales of $$554,000$ and costs of $$404,000.$ The tax rate is $35\%$ and the required rate of return is $15\%.$ At the end of the project, the fixed assets can be sold for $25\%$ of their original cost.

a$.$ What are the annual net operating profits after taxes $($NOPAT$)$ from this project?

b$.$ What are the annual changes in NOWC from this project?

c$.$ What are the annual total net operating capital $($TNOC$)$ from this project?

d$.$ What are the NPV and IRR of this project? Should the management of Margarite's Enterprises

accept this project?