Problem 9-14 Project Evaluation (LO2) Revenues generated by a new fad product are forecast as follows: Year Revenues 1 $52,800 2 30,000 3 20,000 4 10,000 Thereafter Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 30% of revenues in the following year. The product requires an immediate investment of $54,000 in plant and equipment Required: a. What is the initial investment in the product? Remember working capital. b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm's tax rate is 30%, what are the project cash flows in each year? Assume the plant and equipment are worthless at the end of 4 years. c. If the opportunity cost of capital is 12%, what is the project's NPV? d. What is project IRR? Complete this question by entering your answers in the tabs below. Req A ReqB ReqC and D What is the initial investment in the product? Remember working capital. Initial investment RA Req d. What is project IRR? Complete this question by entering yo Req A Req B Req Cand D If the plant and equipment are depreciated firm's tax rate is 30%, what are the project end of 4 years. (Do not round intermediate Year Cash Flow 1 2 3 4 F. If the opportunity cost of capital is 12%, W 9. What is project IRR? Complete this question by entering you Req A Req B Req cand D c. If the opportunity cost of capital is 12%, w Do not round intermediate calculations. Round d. What is project IRR? (Do not round interme C. NPV d. IRR %