USE THE TABLE BELOW TO ANSWER THE FOLLOWING THREE (3) QUESTIONS Ermas Beauty Supply, Inc. is considering expanding the companys existing store. Ermas wants to lease the office space next door. Ermas must spend $120,000 on new equipment to expand. The equipment is expected to have a zero-salvage value and an 8-year useful life. Ermas believes that the equipment will be worthless at the end of its 8-year life. Ermas believes it will have to increase net working capital by $10,000; this amount will be recovered at the end of 8 years. Last month, Ermas spent $12,000 to conduct a survey of potential new customers in the area surrounding the current store to see if there was sufficient demand for a larger store. Ermas estimates that net revenue will increase by $100,000 per year in the new store for eight years. The direct expenses incurred to make those sales are $65,000, including rent. The lease Ermas is considering signing is for 8 years. Ermas Beauty Supply has a marginal tax rate of 40% and has a weighted average cost of capital of 10.0%.

36.) How much does Erma need to expand her business at T=0? 37.) Based on this information, the projects operating cash flow in each of the first seven years is $_______? 38.) Based on this information, the projects terminal year (year 8) total cash flow is $_______?