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Answer problems 11, 12, 13, and 14based on the following.

The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $40,000, and it falls in the MACRS 3-year class. The applicable depreciation rates are 33%, 45%, 15%, and 7%. Purchase of the computer would require an increase in working capital of $2,000. The computer would increase the firm's before-tax revenues by $20,000 per year but would also increase operating costs by $5,000 per year. The computer is expected to be used for three years and then sold for $25,000. The firm's marginal tax rate is 40%, and the project's cost of capital is 14%. (Note: The working capital investment of $2,000 will be recovered at the end of the project and added to the after-tax terminal cash flow from the sale of the equipment.)

11. What is the total value of the terminal year non-operating cash flows at the end of Year 3? 12. What is the net investment, including increase in the working capital, required at t = 0? 13. What is the operating cash flow in Year 2? 14. What is the project's NPV?