Need help solving the yellow, if you could show your work very briefly that would help a lot, thank you for your help!

year2 years Review Case FIN 449 Winter 2021 Plan on opening a business selling t shirts You will buy fabric, thread and shirt paint to make shirts then print shirts. Need to buy Cost year o Expect to sell this equipment in year 5 for the amount below: Tshirt producing machine $ 100,000.00 $ 40,000.00 Tshirt stamping machine 6,000.00 $ 1,000.00 (Will rent space for production) Expect to sell 10,000 tshirts year 1 Price of shirts $20 Fabric/thread/dye cost per shirt $6 Hourly employee cost per shirt $3 Paint and stencil per shirt $1 Manager salary $40,000 per year Rent on room in building $18,000 per year Fixed utility costs $10,000 per year Advertising and other costs $12,000 per year Tax rate 21% year1 year3 year Forecasted number of shirts sold (Grows 5% per year) 10,000 Net Working Capital balance needed Year o $12,000 Net Working Capital balance years 1-5 10% of revenue that year Net Working Capital consists of $5000 of cash and the remainder is inventories Net Working capital is fully recovered at the end of the project, year 5. Required return 8% Assume 2018 Tax laws so machinery expensed in year 1 to book value of zero While this is a new company so may not be able to take tax credits if it has fosses, ignore this and simply assume tax credit if taxable income is negative. Set up cash flows expected on the project 1. Cash flow for Capital expenditures year 0 2. Cash flow for selling cap ex year 5 3. Forecast revenues and Variable costs years year3 yeart Revenue $ Variable costs 4. Find EBIT and Operating Cash Flow (assume zero depreciation) Revenues Variable Costs Fixed Costs Depreciation Expense (Bonus) EBIT Taxes Depreciation Operating Cash Flow year2 years