Question: Use the attached case and find the change in working capital from year 0 to year 6. (Note: Answers must be in 000's) As the

Use the attached case and find the change in working capital from year 0 to year 6. (Note: Answers must be in 000's) Use the attached case and find the change in working capital from

As the newly appointed financial manager of Blooper Industries, you are about to analyze a proposal for mining and selling a small deposit of high grade copper ore. You are given the following information to advise whether to go ahead with the investments or not. Capital investment $10 million in mining machinery. At the end of 5 years the ore deposit is exhausted. We assume the mining equipment can be sold for $2 million in year 6. The required rate of return for the project is 12% and the corporate tax rate is 35 percent. The company applies straight line depreciation to the mining equipment over 5 years. Working capital requirements (000) Year 0 1 2 3 4 5 Amount ($) | 1.500 4.075 4.279 4.493 4,717 3.039 Expected revenue (000) Year 0 1 2 3 4 5 6 Amount ($) 15,000 15,750 16,538 17,364 18,233 Projected expenses (000) Year Amount ($) 10,000 10.500 11,025 11,576 12.155 0 0 1 2 3 4 5 6

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