QUESTION 12 Needle and Thread Inc. is considering expanding one of its production facilities to build a new line of sewing kits. The project would require a $9,000,000 capital investment and will be fully deprecated (straight-line) over its 3 year life. They believe they can salvage $0 for the equipment at that time. Incremental sales are expected to be $10,000,000 annually for the 3 year period with costs (excluding depreciation) of 42%. The company would also have to commit initial working capital to the project of $1,000,000. The company has a 36% tax rate, and requires a 10% rate of return for projects of this risk level. Project cash flow (Cash Flow From Assets) for Year O is: 8. $6,000,000 O b. -$9,000,000 O C. -$10,000,000 Od $13,000,000 e. $18,000,000 QUESTION 13 5. Project cash flow (Cash Flow From Assets) for Year 1 is a) $2,862,000 Ob) $3,035,000 c) $3,598.000 d) $4.792,000 e) $5,050,000 5.2 QUESTION 14 Project cash flow (Cash Flow From Assets) for Year 2 is: a) $2,862.000 b) $3,035,000 c) $3,598,000 d) $4,792,000 e) $5,050,000 QUESTION 15 5.26 Project cash flow (Cash Flow From Assets) for Year 3 is: O a) $5,792,000 b) $2,036,000 c) $3.735.000 d) $4,788,000 e) $4,250,000