use this data sheet to solve the problem

for the mark red part could you explain how to solve it.

. . 8) A company is undertaking a new project. Applicable data follows. Project duration is 3 years Required investment for new equipment is $50,000 * Depreciate via 5-year MACRS The machine will be sold for $25,000 (today's dollars) at the end of 3 years The project will bring additional revenue of $70,000 (today's dollars) per year but will incur additional O&M costs of $55,000 (today's dollars) per year. An initial Working Capital investment of $10,000 at year 0 is required. Subsequent years will require additional Working Capital at the general inflation rate. Any investment in working Capital will be recovered at the end of the project. To purchase the equipment, the company will borrow $30,000 at 15% compounded annually over a 2-year period. You will need to determine the 2 equal annual payments used to pay off the S30,000 The company itself will finance the remaining $20,000. General inflation rate is 3% per year for the project I Tax rate is 21% Market interest rate i is 10% Given the information, o Determine the end of year cash flows for years 0 through 3 o Compute the Net Present Worth for this 3-year project o Compute the IRR of the project . . . . Year 0 Year 1 Year 2 Year 3 NPW Income Statement and Cash Flow Statement 0 2 3 21% 3% 15% 10% Income statement tax rate inflation rate interest rate for paying debt market interest rate Revenues Expenses O&M Depreciation Debt Interest US$70,000.00 US$72,100.00 US$ 74,263.00 US$55,000.00 US$56,650.00 US$ 58,349.50 US$ 10,000 US$ 16,000 US$ 9,600 Taxable income Income taxes Net income Cash Flow Statement Operating activities Net income Depreciation Investment activities Investment Salvage Gains tax Working capital Financing activities Borrowed funds Principal repayment Net Cash Flow NPW NPW (formula) IRR