Revenues generated by a new fad product are forecast as follows: Year Revenues 1 $45,670 2 40,000 3 20,000 4 10,000 Thereafter 0 Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $40,000 in plant and equipment that will be depreciated using the straight-line method over 5 years. The firm recently spent $2,000 on a study to estimate the revenues of the new product. The tax rate is 20%. What is the operating cash flow in year 1? Answer to nearest whole dollar amount. Question 2 What is the amount of the operating cash flow for a firm with $308,270 profit before tax, $100,000 depreciation expense, and a 35% marginal tax rate? 3 Your firm has a potential project that will cost $5,000 now to begin. The project will then generate after-tax cash flows of $395 at the end of the next three years and then $1,626 per year for the three years after that. If the discount rate is 2.09% then what is the NPV?