HeinShmidt Wines.com is considering the purchase of a new project with a four-year life. The depreciable basis is $100,0

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HeinShmidt Wines.com is considering the purchase of a new
project with a four-year life. The depreciable basis is $100,000
and requires $20,000 of additional working capital. The project
will generate $87,000 of additional revenue with $50,000 of
additional operating expenses for each year of the four-year
project. For tax purposes, the equipment falls into the three-year
property class using MACRS percentages. The company is subject to a
marginal tax rate of 40%. The salvage value at the end of the
fourth year is expected to be $5,000. What is The initial cash
outflow for the project? What is The incremental cash outflow for
the project? What is The terminal cash outflow for the
project?