Question: You are evaluating a new project for Bobby Witt, Jr . . ( BWJ ) . The project requires an initial investment of $ 4

You are evaluating a new project for Bobby Witt, Jr..(BWJ).The project requires an initial investment of $430,000 which will be depreciated using the 3-year MACRS schedule (Year 1=33%, Year 2=45%, Year 3=15%, Year 4=7%).The project will increaserevenues by$340,000 and will increase costs by $80,000 each year for the next fouryears. The projectwill be sold at the end of 4yearsfor $10,150. The project requires an increase in net working capital investment of$10,000which will be recovered at the end of the projects life. The tax rate is 25% and the required return on the project is 10%. What is the total initial cash outlay for this project? Multiple Choice -$440,000-$420,000-$430,000-$330,000 What is the operating cash flow for the project in year 3? Multiple Choice $230,475 $211,125 $243,375 $195,000 What is the total cash flow in year 4 of this project? Multiple Choice $184,912 $220,138 $210,138 $202,525

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