Question: You had several big NPV problems in your last Homework. Let's review the general set-up of such problems. From the images below, pick the one

 You had several "big" NPV problems in your last Homework. Let'sreview the general set-up of such problems. From the images below, pick

You had several "big" NPV problems in your last Homework. Let's review the general set-up of such problems. From the images below, pick the one that correctly sets up the NPV problems based on the information that is given -- for which years would you need to calculate the Operating Cash Flow (OCF), the Net Capital Spending (NCS), and the change in Net Working Capital (Ch. NWC)? GIVEN: Witches Incorporated decided to start a new 4-year project. They would need to right away buy cutting edge equipment to produce high-speed electric brooms. This equipment will be worthless at the end of the project. Each year, electric broom sales will generate profits. It will also be necessary to immediately set aside cash to cover any unforeseen repairs of the equipment, and the cash reserve will be increased each year of the project life. Yr 0 + Yr 1 + OCF Yr 2 + OCF Yr 3 + Yr 4 + OCF OCF OCF NCS NCS NCS NCS NCS Ch. NWC Ch. NWC Ch. NWC Ch. NWC Ch. NWC Total CF Total CF Total CF Total CF3 Total CF o Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 + OCF OCF OCF OCF NCS Ch. NWC Ch. NWC Ch. NWC Ch. NWC Ch. NWC Total CF Total CF Total CF Total CF3 Total CF, Yr 1 Yr 3 Yr 4 Yr 0 + Yr 2 + OCF OCF OCF OCF NCS NCS Ch. NWC Total CF Total CF Total CF Total CF Total CF O Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 OCF OCF OCF OCF NCS NCS Ch. NWC Ch. NWC Ch. NWC Ch. NWC Ch. NWC Total CF Total CF Total CF2 Total CF3 Total CF O Yr 0 Yr 1 + Yr 2 + Yr 3 + Yr 4 + OCF OCF OCF OCF NCS Ch. NWC Ch. NWC Total CF. Total CF Total CF Total CF3 Total CF O Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 OCF OCF OCF OCF NCS NCS Ch. NWC Ch. NWC Total CF. Total CF Total CF2 Total CF3 Total CF4

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