supplements by body builders. The project will be located on a piece of land owned by the company with thes can be fully depreciated straight-line over the next 5 years with a residual value These mach Arnold Inc. anticipates that the machine could be sold for $200,000 at the end of the project's life. Arnold Inc. has also paid $100,000 to a company to conduct market feasibility study for the product, On average, the sales of protein bars are expected to be 625,000 units annually at $4 per unit for each of the 5 years of the project. Total manufacturing costs and operating expenses are 80% of sales; tax rate is at 30% and the required rate of return for such project is 15%. Finally, the project requires an initial investment into net working capital equal to 10% of predicted first-year sales and the amount is expected to remain the same throughout the project's life. Required: A. Calculate the initial capital outhy required in Year 0 for the project. (2 marks) B. Prepare the concise income statement of the company in the table below and calculate the incremental annual operating cashflow from Year 1 to Year 4 assuming there is no inflation in the next table. (5 marks) Calculate the terminal (ending) cashflow in Year 5. (Hint: You must calculate the Net Proceeds after tax of the sale of machine to be included in the calculations) (2 marks) D