THIS PROBLEM HAS $8$ QUESTIONS. EACH QUESTION HAS $4$ POSSIBLE ANSWERS. THERE IS A DROPDOWN MENU FOR EACH QUESTION. MAKE SURE YOU ANSWER EACH QUESTION.

You are evaluating a new project for your company FINSOFT, Inc., which has developed a new financial software. The project requires an initial investment of $$252,000$ in fixed assets which are to be depreciated straight$-$line to zero over the $3-$year project life. At the end of year $3,$ all fixed assets are sold for an estimated resale value of $$63,000.$ Net Working Capital requirements at the beginning of each year equal $10\%$ of the projected sales during the following year. Projected sales from the new software are $$300,000$ in year $1,$$$360,000$ in year $2,$ and $$420,000$ in year $3.$ The variable costs amount to $50\%$ of projected sales and fixed costs are $$36,000$ per year. The tax rate is $20\%.$

Hints:

Change in NWC at $t=0$ equals $10\%$ of the projected sales at $t=1.$ It is an outflow.

Change in Fixed Assets at $t=3$ equals the resale value minus the tax on the capital gain. It is an inflow.

QUESTIONS:

Question $1$: Operating Cash Flow at $t=1($Year $1)$ is

an inflow.

QUESTIONS:

Question $1$: Operating Cash Flow at $t=1($Year $1)$ is

Question $2$: Operating Cash Flow at $t=2($Year $2)$ is

Question $3$: Operating Cash Flow at $t=3($Year $3)$ is

Question $4$: Change in NWC at $t=0$ is

Question $5$: Change in NWC at $t=1($Year $1)$ is

Question $6$: Change in NWC at $t=3($Year $1)$ is

Question $7$: Change in Fixed Assets at $t=0($initial investment$)$ is

Question $8$: Change in Fixed Assets at $t=3($Year $3)$ is